The Line

I could not have imagined the QLD trade working better than it has. I took partial profits at $72.88 today (entered at $67.88, as noted in the free trial of the Trade Report) for a $1250 gain (+7.3%). I’ve moved my stop on the remaining position up to my entry point, and have had thoughts about moving it up to $70.

The key level is the $78-79 range. That is the first major area of resistance for this bounce to bump up against. This level has been important over the past year. Notice on the chart below how price moves along this line. The April breakout did not mount this level until it pulled back first.

The “line” is where I will likely reverse from long to short. It’s a great short entry, where a logical stop could be placed either just above the “line” or above the 50 day MA. This assumes volume patterns play out. If I see true accumulation, I doubt I’ll short.