This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I traded Cephalon, Inc. (Public, NASDAQ:CEPH) today, as an OR breakout. Due to my poor performance the last couple of weeks, I approached this trade with caution, meaning a later entry, a smaller R-size and conservative profit taking. There weren’t a lot of setups out there today, but later I saw CEPH break above the OR high, along with the magic 5-ema:
I looked at the daily chart to get a gauge of resistance to judge my 138% fib extension target:
I saw heavy potential resistance around $76.00, so I made that revised my target level. I didn’t think it would ever make the 138% fib based on the rate it was moving at the time. Here’s a tick chart showing my exit (and the aftermath):
The BAV Trend seemed to move exactly opposite to the price action, so that wasn’t any help. As CEPH stalled at $75.90, I decided to take profits. As Richard said,”Trying to eek out ‘just a little more’ profit is a suckers wishful thinking”. Soon after, it went on to hit the 138% target. Not enough wishful thinking today, I guess! Still, I followed my plan and my cautious status, so I’m pretty happy with the trade. If anybody sees any clues that I missed that would have indicated that CEPH would hit the 138%, please leave a comment!
Trade Summary:
CEPH Long 56 Shares
Entry: $75.30, Stop: $74.97, Target: $76.66
R: $18.48, Exit: $75.90
P/L: 1.82R, or $33.60
Trade Grade:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
