Category Archives: Candlesticks

Trading Technic used to identify charting patterns

NE

Buys NE at $6.12 and $6.18.

Noble corp. PLC is a oil drilling contractor based in London, England.

Like all oil related companies their business has dropped off drastically and will probably not recover any time soon.

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This trade is based on the chart patterns on the 60 minute and daily charts. On the 60 minute chart we have a Cup and Handle and on the daily chart we have a Hammer. I don’t like the quality of the hammer because there was a no gap down, just a strong recovery on the day after a long run down.

Targets are $7.50, $8.65 and $9.50.

My current stop is at $6.19 which I will raise as the stock rises.

I don’t want to stay in NE longer than 4 or 5 weeks unless there is some positive news in the interim. This only a bounce play, the fundamentals are horrible.

Dave C