Gameplan:
Ticker: CL
Sector: Consumer Defensive / Household Products
Average Beta: 0.60
Set up: Head & Shoulders
Entry Price: 80.15
Stop Loss: 77.39
Price Target: 92.50
Scale in/out: Will scale in light if volume picks up approaching 80$. Will Kick 1/3 into strength if bids support the trade. Will trail the other 1/3rd through the previous day LOD. The final kick will be held against entry to reach target (5:1).
Will you trail: Will trail with previous day LOD for 1/3 of the shares.
Next Earnings: April 30
Previous Earnings: January 29
ATR: 1.35
ATV: 5.12
Spread: 0.01 - 0.05
Support: 77.50, 78.50, 80 (Can be used as support if bids can support)
Resistance: 80, 86.50 (ATH)
Key Levels: 77.50, 80, 83, 86.50 (ATH)
Short Interest: 0.80%
I like this trade because it has a defined phycological resistance level at 80$ and the formation makes it even more clear. There isn't too many resistance levels ahead besides all-time highs, so if volume can support the bids breaking out of this 80$ level then this trade could work pretty well.
I wouldn't trade full size into this trade but instead grab a feeler since its coming off of a pullback that isn't really too healthy along with the levels of support not being to defined as its just a micro pivot level. Another con to this setup is that earnings is on April 30th meaning this name is going to have to make a 16% in almost 3 weeks, and for a low beta name this would be difficult.
This trade isn't an A+ but instead a B-
Ticker: CL
Sector: Consumer Defensive / Household Products
Average Beta: 0.60
Set up: Head & Shoulders
Entry Price: 80.15
Stop Loss: 77.39
Price Target: 92.50
Scale in/out: Will scale in light if volume picks up approaching 80$. Will Kick 1/3 into strength if bids support the trade. Will trail the other 1/3rd through the previous day LOD. The final kick will be held against entry to reach target (5:1).
Will you trail: Will trail with previous day LOD for 1/3 of the shares.
Next Earnings: April 30
Previous Earnings: January 29
ATR: 1.35
ATV: 5.12
Spread: 0.01 - 0.05
Support: 77.50, 78.50, 80 (Can be used as support if bids can support)
Resistance: 80, 86.50 (ATH)
Key Levels: 77.50, 80, 83, 86.50 (ATH)
Short Interest: 0.80%
I like this trade because it has a defined phycological resistance level at 80$ and the formation makes it even more clear. There isn't too many resistance levels ahead besides all-time highs, so if volume can support the bids breaking out of this 80$ level then this trade could work pretty well.
I wouldn't trade full size into this trade but instead grab a feeler since its coming off of a pullback that isn't really too healthy along with the levels of support not being to defined as its just a micro pivot level. Another con to this setup is that earnings is on April 30th meaning this name is going to have to make a 16% in almost 3 weeks, and for a low beta name this would be difficult.
This trade isn't an A+ but instead a B-