Chart Watch 2009-03-01

XAO - All Ordinaries



Three trading days in a row closing below 3300, with multiple attempts to break through. All trends on the XAO still pointing down.

WOW - Woolworths



Wow indeed. Late last week I highlighted Woolworths ... made the critical mistake of not checking the economic calendar. Earnings come out below expectations and gapped down well under my stop loss (open $26.9). Take the hit on this one.

JBH - JB Hi-Fi



JBH has created a throwback patten. "A throwback is simply a return to the point of breakout on an upward break ... If the breakout is true, price should hit and then bounce off the point of breakout and then surpass the point at which momentum waned and price turned".

Some rules for trading the throwback

1. Return to point support, trend line or pivot point

2. Oversold on your favorite indicator

3. Pullback to a major moving average, such as the 30, 50, or 200 day.

So how as JBH played out so far:
* Resistance was $10.30 (5/11/2008) and $10.26 (7/01/2009)
* 17% gain on 10/02/2009 closing at $10.80 on extremely high volume
* Pullback to support closing $10.29 and just below 200EMA on 25/02/2009
* RSI(2) was oversold on pullback to support (25/02/2009)
* Stock pulled back into the traders action zone

See how this stock plays out. Stop loss ideas include $10.26 (support) or take low from swing at $10.05.

From swing-trade-stocks "Forget buying breakouts. Step away from the crowd. Wait for the breakout buyers to get scared and sell. This sets up the pullback that you can get into with low risk, high odds, and a profitable reward."