Saturday, April 14, 2012

Update - CPI:LSE

Oh well.....I entered my first tranche of this trade too early.   However, as you can see from my original post, I only took a half trade size in the middle of the channel.  With the benefit of hindsight, I should have exercised more patience and simply monitored the price to see if I could get an entry nearer the top of the channel.   However, what has developed is interesting.  The price action has proceeded to climb to a point just short of the top of the channel and consolidated.   This has all happened in what looks like a bearish rising wedge and  the price was making new highs but the momentum indicator was not.   That was enough to spur me into action and increase my trade size to my normal risk level within my money management strategy.    You can see that the price consolidated for around 7 hours at the 738p level so this gave me the opportunity to take my second position at  the 735p level.    The price has subsequently dropped to a point where my overall position is now at break even and any downward movement from here will be welcome!

No comments:

Post a Comment