We have an excellent setup with NWK, a breakout with big volume after two months base.
In some markets a breakout is followed by a light volume pull back likely to return the price near the breakout level, i.e., the old resistance tends to become new support. Because of that, if we want a prudent strategy we can wait for a pull back near the old resistance. If we want to be more agressive and if there is favourable intraday evidence you can enter long as soon as possible.
The square box is a sign that the move was already encountering some resistance, so we recommend to wait and see if it pull back some before continue in a good move higher. Off course a logical stop loss is under the old resistance, near 6.2 usd.
In some markets a breakout is followed by a light volume pull back likely to return the price near the breakout level, i.e., the old resistance tends to become new support. Because of that, if we want a prudent strategy we can wait for a pull back near the old resistance. If we want to be more agressive and if there is favourable intraday evidence you can enter long as soon as possible.
The square box is a sign that the move was already encountering some resistance, so we recommend to wait and see if it pull back some before continue in a good move higher. Off course a logical stop loss is under the old resistance, near 6.2 usd.
Also chek the price/book number 1.79 (http://finance.yahoo.com/q/ks?s=NWK) There is "space" for a big move.
1 comment:
Today we have a bullish day trade pattern. I enter after the open range (+- 15 hours in Lisbon) at 6.82 usd. Throughout the day the price climbed to near 7.40 usd!!. Today the price of NWK rise more than 10% !! If you followed our advise you win much more in one day than in one year with your money safe in a ordinary bank account. :)
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