My only trade so far (nothing closed out either at this point) comes in Pentair (PNR) at $43.85. Initially when i got in it, it rocketed up to $44.40 but has since pulled back again to my entry price. The pullback is actually very necessary as it was getting extremely over-extended on the 5min-intraday chart.
But if you look at it from the daily chart, there's a lot to get excited about. First you have a huge jump from $36 in July all the way up to $44 about, but since then it has channeled sideways in a bull-flag type of pattern. Once I saw it starting to breakout of the bull-flag pattern this morning, that's when I took my cue to get long at $43.85.
I speak about volume quite a bit (a lot of traders ignore this these days) as over the past two days there has been a ton of buying interest in this stock, and that's telling about the direction it wants to go.
Here's the trade setup in PNR.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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