tradersams blog

pyramid into CEY

CEY: Increased my position in Centennial Coal today.  This was a pyramid entry at $3.53.  I set an entry trigger over the weekend to fire when the upper resistance level was breached – but as you can see, resistance held and the price fell after my entry.

Still, the share has been performing well and volume is strong.  I’m looking for a climb to the upside tomorrow or I may have to rethink this secondary entry.

bhp - triangle breakout

BHP:  The big Australian is always worth watching, with good trends, gaps and all sorts of good stuff.

Of interest today is the white candle coming out of the descending triangle, looking like a very nice breakout signal.  As I am still bullish on BHP I have taken this trigger to take an call option on BHP to try and capitalise on the move.  If you review my BHP trades you will see its not always my most profitable instrument, however at times in the past it has rewarded me well.

bhp flag

On a hunch I have changed the position of my lines outlining the triangle and I get the diagram found to the left.  All I’ve done is draw it more like a flag, and shown the measured move I am hoping to profit from.  Not a perfect flag I’ll admit as I like to see it formed over a shorter period when compared to the duration of time spent forming the ‘flagpole’.

I’ve added this chart to chart.ly as I wanted to play with the tool – you can see it here.

For anyone interested – WPL (Woodside) has also broken through resistance and is looking good for a move.  If I hadn’t already entered BHP I’d say its a stronger looking move.