Learn the Exceptions to the In-Exact Science of Trading

• Posted by Greg Harmon
• on December 30th, 2014

Trading is an art not a science for most people. Unless you are a high frequency trading algorithm that can read all bids and offers, before they hit the floor, and react, you need to be pliable, malleable and quick to react. That does not mean that you need to make a decision in a micro second to buy and then sell a micro second later.

It just means that you cannot have a preconceived path, but need to be prepared to make a decision against the scenario presented to you at that point in time, and be prepared to be wrong and change it.

But there is one place where it may be possible for a mere human to make money in an trading Exact Science. The stock of Exact Science, $EXAS, is ready for another move higher in an uptrend. From the chart above you can see the price at resistance of the prior high from 4 weeks ago. And there is rising trend resistance overhead.

The momentum indicators are in the bullish range, with the RSI strong and the MACD rising. The break of the resistance to new highs targets a rise to 32 on a Measured Move basis. That may not see like much but it is a 10% return and looks to happen over a month or so. Not exact, but not too shabby.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

 

---

 

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through December 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