Company - CAE Inc
Research - they have something to do with aviation training simulators...I think they contract out their services and simulators for training pilots...something like that.
Long trade, basically the classic buy at $12.50 on June 17th.
They had a news break of some sort last month and the stock jumped. I won't trade on news. Had I been trading these guys already using my CTP strategey I would have been long late April and been there when the news broke and sold June the 6th...but I wasn't.
They are coming off of a six month consolidation period which was broken Early May and I entered the trade thinking the new lower trend boundary had been set and the price had bounced off of the 200sma line. I had to adjust my lines a bit and I hope they are good now. I set a new TWT up line (red dashed). I have noticed that the old upper trend boundary line can sometimes make a good resistance line as the new trend pattern is established. I don't like adjusting lines to accommodate new prices as it looks like I am trying to make the trade setup look good but sometimes it is necessary. Extending the lines is one thing, moving them is another. This were just little juggles though so I feel pretty good about them even though the 200 sma was crossed.
Someone sent me a quote from some analyst fellow saying that this was a good time to get in...I think he said that at about the time I got in, it really had no bearing on my entry as I read it afterwards. I will be lowering my stop on this one a bit in order to keep it where I think it should be based on the slightly altered lines...$11.80.
JD.
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