Thursday, September 08, 2011

Divestment of Cache

Not too long ago, I divested Cache Logistic. I thought my entry and exit are pretty well done, so I clipped an image of the chart showing the day and price that I got in and out to remind myself of the finer detail of this wonderful trade. An excellent entry should be complemented by an equally excellent exit.

Entry date: 16th March

Bullish divergence on MACD on daily chart with the price breaking the downtrend line. I absolutely love this kind of set up and will most likely trade whenever I see such patterns. I also like the sharp spike in FI, which signifies a capitulation of sorts. This is not true when FI spikes up instead.. Somehow the chartnexus chart incorporated the dividend into the chart, so the lowest point of the chart is 0.882, which is my entry point after taking into the dividends received till to date. Entry on the lowest price of a white candle. Fortune must have looked this way when I bought it.

Exit date: 1st Sept

A big A is generated, perhaps will be followed by a B and eventually a C. It's good to reduce positions when it's in phase B. If not, might have to ride it all the way back down below the price of A. I saw a significant top around 4th Aug, with a price of 0.98, so thought it might be a good idea to sell off at that level. It happens to hit that level and I got out of my position. Exit on the highest point of the day's range. Doubly lucky!

Will look forward to getting back this counter.


Ao said...

Hey LP,

Thanks for showing your trade setup so that I can learn from. Hope to see more posting of your trade setup pictures in future :)

la papillion said...

Hi ao,

No prob, but usually people dun comment on my TA posts, so I do mainly as an online record for myself :)

PanzerGrenadier said...



Huat argh! :-)