Let’s take CTRX from one decision to the next. One of the things that I often say to my traders is that “many moves terminate at Fibonacci EXTENSIONS of prior swings if only temporarily.” If you look at this daily chart in CTRX, you can see where the recent rally TERMINATED at extensions of prior swings. Since then, we have had a nice pullback in this stock which takes us to the next decision. On this pullback we are NOW looking at a key price cluster of support at the 48.69-50.09 area.
IF the bullish trend is going to RESUME in this one, ideally we hold above this new support decision and it is followed with a “buy trigger” that tells you it is worth placing a bet against this key price support zone. The triggers you use for an entry will depend on the TIME FRAME you are trading. Are you a day trader???…. Are you a swing trader??
Please read the guidelines that I have posted on the front page of my site. These will help you understand how to use the setups that I post!