November 1, 2012:
My order was filled today at 40.94. Immediately I place a sell-stop order at 37.40. This price was 8.64% below my purchase price, slightly higher than the recommended 7-8% stop loss, but it was the best technical spot for putting the stock, as it was below any recent lows and shouldn’t be hit unless a bigger correction occurs in the stock.
The stock closed on November 1st at 41.16. This was a small breakout, but was not ideal was that the breakout was not on higher volume. High volume is like fuel, the more investors buying the breakout leads to more fuel to keep going higher. But we closed on lower average volume over the last 3 months. A warning sign….
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