My entry on this position stunk, no doubt about it. But there was really no way to play it other than to put a buy-stop on it as soon as it hit $22.40 (breakout price). However, what I wasn’t expecting to see was the head fake the the bears gave us, by erasing most of the day’s gains in that stock. However, I’m sticking with it for now – my stop is pretty tight, and don’t need to tighten it any further at this point. Overall on the day, I am up about 1.7% which is a bit ahead of the market returns. As a whole, regional banks haven’t really been major participants in the market’s latest rally, but is showing signs similar to the breakout pattern found in ZION that leads me to believe that we could see a breakout in this industry in the days ahead. 

Here is my chart analysis on ZION.

 

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind