AEM, Agnico Eagle Mines daytrading

This is a 2 day, 5 minute chart for AEM showing the four support and resistance lines that I found.



A - the closing price on the 13th, a major line

B - seemed to be a minor line from the 13th

C - The opening price on the 14th, a major line

D - another line established on the 13th, fairly major possibly...turned out it was.



Keep in mind that these lines are really just zones and a lot can happen around them. They do not indicate a point where a price will do anything in particular but an area or zone where the price is more likely to do something .



I place red arrows for resitance and green for support.



The original plan that I had would have had me attempt to buy the stock at the price right as the market opened, about $55.45 and take advantage of the first impulse move toward the closing price on the 13th, about $57.00. The price jumped to about $56.60 in the first minute then dropped back to $55.70...too fast to try to do anything with I have found so I have given up on that plan.



Using line A and C as guides I entered a long position at 945h at $55.85. On the 1 minute chart with better detail their is a drop to near line C and the price follows the 10 sma line trending up from there. I ended up getting out of the trade at $56.50 for a $65 gain.



The second trade would have me in again long at 1047h at $55.80 as the price appeared to bounce off the C line and headed back up. I got out at $56.00 when the price failed to head up convincingly.



Had I been trading past 1100h the line C became very important as the price ranged between it and B for an hour...once it convinvingly broke the C line down it would have made a good short entry...probably around $55.30. Using the upper Bollinger band as a guide for a stop limit would have worked well as the price stayed below this line and hovered around the D line for two hours then headed back down for an end of day exit to gain about $1 per share. But that is all hindsight, I likely would have covered at $54.60 as the price headed back up over the D line at about 1345h. A lot of this depends on wht the 1 minute chart looks like as the moving averages and the Bollinger band are faster moving at the smaller scale.

That is a short blurb on the above chart.