Checking My Text(ron)
- Posted by Greg Harmon
- on July 16th, 2014
The conglomerate Textron, $TXT, caught my eye this weekend as a possible set up to trade to the long side. But with earnings Wednesday before the open it got put on the shelf.
Rule #43: Do not enter a new position the same week as earnings, other than for the earnings event itself.
So it got put on the shelf for consideration later. Now that it has reported the chart looks good, especially on a weekly timeframe.
The Hammer from last week that briefly broke below the Bollinger bands is being confirmed higher this week. A green candle at the close on Friday can be a buy signal, with a more conservative trigger being a move over 40.25. The price action since February now looks solidly like a consolidation pattern with the Bollinger bands tightening. The RSI is bullish and turning back higher. But the MACD is continuing lower. In the end price is the arbiter of whether a trade exists or not. Wait for the break or take it now with protection against the Hammer or lower Bollinger band.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through June 2014 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Top Trade Ideas for the Week of January 26, 2015: The Rest
- Top Trade Ideas for the Week of January 26, 2015: The Rest Premium
- Top Trade Ideas for the Week of January 26, 2015: The Best
- SPY Trends and Influencers January 24, 2015
- Macro Week in Review/Preview January 23, 2015
- Premium Earnings 1-23-15
- The Longer Outlook in ….. The Nikkei Average
- Assembling a BioTech Trade in Assembly Biosciences
- Premium Earnings 1-22-15
- The Longer Outlook in ….. US Treasuries