Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

intraday resistance

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**Notice: I personally own shares in this stock (as does a client) at the time of this post.**

I noticed mid-day that Accenture had been hitting some serious overhead resistance at exactly $39. Aha… time to research.

The three month chart (click to expand) shows that the stock has been middling along around $38 and $39. If figured that if the stock made a significant move above $39, it would also take out the recent high, shown at Point A.

ACN three month chart

If I had only been looking at an intraday chart, I would not have seen the context of where a stock is in its broader trend. Now let’s look at the intraday chart.

ACN intraday

See how for three hours the stock tries to move up through $39? Sometimes it trades right at $39, sometimes hovering at $38.90, but the market is finding a balance between buyers and sellers. Stocks like to move, not balance.

I put in a limit order to buy at B as the stock advances. It doesn’t jump further. Hmmmmm. Do I dump it, pocket lunch money profit, and move on?

Through constant retrospection (one of those 20 rules I mentioned in an earlier post), I find that too often my analysis is right, but I sell too quickly. Lesson learned.

So I sit tight and run some errands. Not to be glib, but these moves are good to see.

Trade away.

Written by heyercapital

May 16, 2007 at 2:45 pm

Posted in charting, stock ideas

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