I bought 500 shares of FLR at $120.20. The stock has been on my primary watchlist since the July breakout and has been a great trend pullback trade. I recently set an entry of $117-120, and the stocked dipped down to $119 yesterday. However, I decided to take a wait an see approach because of yesterdays overall market weakness and uptick in negative volume. Today’s strength quashed my fears, and I was willing to buy a little above my entry range.
Along with price support, RSI is at a strong support level (50). I also like the fact that stochastics and OBV have made higher highs.
My initial target is $125, with a stop under the 50 day moving average, at $116.
It’s a tough call right now because volume on today’s bounce was greater than yesterday. I’m not going to make a predication, other than to say I am not taking a position right now.