I have been using TA for my stock trading, and I like to read unbeldi4u and s.vb66's comments on urre.
I bought urre at open on Monday (Feb 7) when I saw the price jumped above the 20 and 50 MA on last Friday (Feb 4), and I thought it would continue its uptrend.
However, the trend quickly reversed as soon as I got into the position.
Did I get in too soon, or should I wait to see what's going on during the Opening Range?
I also feel insecured to put a stop loss order because each time I will be stopped out before the stock goes back up again. I was wondering if it's worth the market maker's while to bring the price down just for taking my small shares away?
Any thoughts, guys?
The trend is intact, don't worry about that. Prices are just volatile jumping up and down which is normal for these stocks. I posted a chart with the trend and someone just posted another. Take those as a guide and don't worry about fluctuations inside the channel. Prices may step outside the channel for short periods too, it doesn't mean the trend is changing.
Stop losses are great if they are applied correctly, but you have to be very careful with that for volatile stocks, for obvious reasons. At this time a stop loss should be set just below the start of the trend, no matter what happens in the trend this will not take you out, because the minute prices go below wave 1, the wave sequence is destroyed and in that case our whole bull scenario that we are assuming as traders is void, and the market conditions do not support it anymore. That is the purpose of a stop loss, to avoid further damage to your account. In the initial stages of a trend, stop loss is not to protect gains, only until later in the run has it that purpose. SO you just have to bear the uncertainty initially, there is no way around it. That's why timely entry into a position is so critical, many people buy stocks at the top trend line of a channel when they see how well the stock is doing, when they should wait until it corrects to the bottom of the channel. Now sometimes it just keeps going, but then it's probably better to look for a less risky market. Never buy into the peak of a running market, that the time to sell if anything.
your constructive opinion is highly appreciated. I know stop loss is very important to control damage, but I oftentimes left it too tight so I got stopped out prematurely.
Would you advise where you would consider the start of the trend for URRE, 2.60 or 2.45? Do I understand correctly that the stop loss shall be placed here?
My TA has URRE overbought. WE need a good drop down to the $2.75 to $2.90 range. Then we'd be in a great position for another run to $4. If we gap up past $4 watch for the next big run. JMHO.
Shorts not only pick up for Stops, they also go pick up Buyers.
I think in general URRE will go up as i mentioned several times before.
You could be patient or inpatient and stop loss or get even or just the thing you prefer.
I think we sit just before the time ccj will come out with news that CAN move up the URRE pps, but again, this is my opinion. And i do point out the uptrend on friday, which is very significant to me.
I made a little chart, wich i use and prefer, were the general uptrend (for now)is noticable. The fibonaccis always come back and make there 'point'.
As Unbeldi stated too, URRE is in an upward trend and as i mentioned before, URRE is far from the worst seen in the past months and that is also the way i look at this stock.
I think there is great potent in it and i think in therms of 5+. But again this is my opinion.
Hopefully the chart is helpfull.
Thanks for sharing your charts with us which are helpful in predicting the possible direction URRE is supposed to go.
From the chart, is there any way to explain today's price action where it suddenly jumped from 3.17 to 3.35 without any news.
look at the 10 and 50 day SMAs on a 3 or 6 month graph, you will see, it is about to go up again soon, they are a week or 2 from crossing, but upward move always starts a week or 2 before they do actually cross... and the current resistance is around 3.16 - 3.20 from the pull back on that big spike last friday.. don't need to know more TA than that unless you are day trading ;) ... and if you're day trading.. in which case you can find their theories on the 80 response thread called technical analysis :)