as i continue to update any outstanding set-ups or active trades that should have already been re-categorized, MDM stands out as a good example of how one can utilize the targets on the trade ideas posted here not only as profit targets but also as an aid to placing stop-loss orders to protect profits on winning trades. remember that once a resistance level is broken, it become support and vice versa. in this example (see today's chart, the last in the string of charts posted on the MDM trade below), a trader preferring tight stops could have set a stop not [...]
MDM has hit T2 so consider taking partial or full profits and/or raising your stops, depending on your trading plan. as i mentioned last night, i am going thru the existing trade ideas today to update the set-ups and active trades. keep in mind that due to the sheer number of trade ideas on the site, i can't update every single trade. therefore, if you noticed that a trade that you are in has been removed or re-categorized, i'll be glad to e-mail you an update with my thoughts or notes on the trade. also note that in order to keep [...]
the MDM trade just cleared the T1 resistance area which opens the door for T2. notice how prices made a perfect hit of T1 then pulled back and consolidated while bouncing knocking on that level several times before building the energy to punch thru today. that doesn't guarantee a hit of T2 or T3 but certainly increases the odds quite a bit. if still long, considered moving up stops to just below T1.
i'll be updating a lot of the active trades that have hit targets or stopped out over the last week or so. MDM still looks good as it hit the first target the day after a added these sub-targets (below the pattern measurement/final target) back on feb 28th. as mentioned in that post, these targets are usually good for trading around the position by taking full or partial profits and re-entering the position on a pullback, even if you plan to swing trade to a higher target(s). as you can see, MDM hit my first target on feb 29th, and stopped [...]
MDM has been taking some nice volume since breaking out of the descending broadening wedge pattern that i posted on feb 6th (click here to view post/notes on trade). since the distance to my primary target posted on the original chart is quite large (38% from breakout), i have added several sub-targets here for more active traders that like to trade around targets or any swing traders that may want to take partial profits along the way. these levels can also be used a levels to ratchet up your stops once the stock has clear those potential resistance areas, particularly if [...]
this pattern can break either way so targets are listed on the daily chart for a pattern resolution in either direction (long on an upside break of the pattern, short on a break down of the pattern). note that i did add an alternative (shaded) lower trendline to the pattern. however, prices currently sit at the very top of the wedge and therefore, i am currently watching for a potential upside breakout of the pattern. the weekly chart below shows the pattern well.