LNR - Linamar

I sold my shares of Linamar today. The price dropped to my stop setting and sold.

Realized profit for the trade: 16.3% net

Duration: 5 weeks and 2 days


I re-plotted the trend lines to see if there is a good re-entry coming up. It appears as though the last two weeks were a very shallow downtrend, which I realized but never plotted. I still would have left the stop where I did as I could have sold two weeks ago for 23% and chose not to. Looks like it's time to wait this one out and look for another stock to trade.

I won't post the chart tonight but it looks like it may continue up after finishing with this little consolidation phase...basically the price action remains mainly horizontal while traders re-position themselves, kind of an equilibrium. There was a rather large jump in price in one day a while back and a previous long consolidation and shallow uptrend. For those who follow the MACD (I'm not going there in the posts yet) it displayed a classic positive divergence pattern that pegged a good entry point almost anytime in April. For pattern traders the cup and handle is now pretty much complete so we need to see where the price goes from here. I suspect it will see $14.50 to $15 and that would be a good re-entry point for a long position...but I won't bank on the drop from here to there. For me, the CTP trader, I will wait for the next trend to emerge then position accordingly.

JD.