Textbook Play
September 13th, 2005 by BWV
OK, I’m a stock market junkie. Even on vacation, I couldn’t help but notice that the Biotech sector (represented by the BBH exchange traded fund) was rolling. Genentech (symbol DNA), the biggest & baddest of them all, broke out to fresh all-time highs.
However, in its typical devious fashion, the market has inflicted some pain on those breakout buyers.. the peeps who paid $94-ish are now sitting on a quick $3 loss, and some are no doubt taking their medicine. Believe me, I know from experience.. I’ve been there before!
Shakeouts like this give patient traders an opportunity to enter a stock in a more professional manner.. on a Pullback!
I’m banking on previous resistance around $90-91 becoming new support. I got long yesterday at 91.60.. my stop is around $88.50, for about $3 of risk.
Long DNA
Click Here for a solid explanation of the important concepts of support & resistance..