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Bulkowski's CHG Trade

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As of 05/17/2019
  Industrials: 25,764 -98.68 -0.4%  
  Transports: 10,492 -113.76 -1.1%  
  Utilities: 790 +3.91 +0.5%  
  Nasdaq: 7,816 -81.77 -1.0%  
  S&P 500: 2,860 -16.79 -0.6%  
YTD
 +10.4%  
 +14.4%  
 +10.8%  
 +17.8%  
 +14.1%  
  Tom's Targets    Overview: 05/14/2019  
  Up arrow26,600 or 25,000 by 06/01/2019
  Up arrow10,700 or 10,000 by 06/01/2019
  Up arrow825 or 755 by 06/01/2019
  Up arrow8,100 or 7,400 by 06/01/2019
  Up arrow2,900 or 2,740 by 06/01/2019
As of 05/17/2019
  Industrials: 25,764 -98.68 -0.4%  
  Transports: 10,492 -113.76 -1.1%  
  Utilities: 790 +3.91 +0.5%  
  Nasdaq: 7,816 -81.77 -1.0%  
  S&P 500: 2,860 -16.79 -0.6%  
YTD
 +10.4%  
 +14.4%  
 +10.8%  
 +17.8%  
 +14.1%  
  Tom's Targets    Overview: 05/14/2019  
  Up arrow26,600 or 25,000 by 06/01/2019
  Up arrow10,700 or 10,000 by 06/01/2019
  Up arrow825 or 755 by 06/01/2019
  Up arrow8,100 or 7,400 by 06/01/2019
  Up arrow2,900 or 2,740 by 06/01/2019

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

Picture of the CH Energy (CHG) on the weekly scale.

I like owning electric utility stocks because they pay you to hold them. That was true in the past and it's certainly true now, but in the future, with greenhouse emission regulations coming, then making a profit from utility stocks I think will be harder to come by.

I've owned CH Energy (CHG), pictured (weekly scale), for years. I range trade it. That means I buy low and sell high. The low price is often in the low 40s when I buy and the target exit is above 50 (I try for 52). You can see the range if you flip to a wider time scale.

This is an example of such a trade.

When price reached support at B, forming a potential double bottom low (A), I bought the stock on June 3 at 39.72. It wasn't the bottom, which I missed by three days. That's not bad.

The double bottom chart pattern confirmed when price closed above the peak between the two bottoms, at D. That's the traditional buy point.

I held onto the stock, hoping to sell it at 52 and collect a 5.4% dividend along the way. That's the dividend rate based on my purchase price.

When price neared 50, I placed a limit order to sell at 52. That triggered on April 5 (C) for a net gain of 35% including three dividend payments (otherwise it would have been 30%).

-- Thomas Bulkowski

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See Also

  • CH Energy (CHG), average down on buy side, sell at overhead resistance, +50% in 3 months.
  • Conseco (CNO), flat base on entry, inverted dead-cat bounce on exit, +110% in 6 days.
  • Hecla Mining (HL), head-and-shoulders bottom on entry, trend change on exit, +15% in 9 days.
  • Georgia Gulf (GGC), Adam & Adam double bottom on entry, +32% in 3 days.
  • Monsanto (MON), ugly double bottom on entry, hit stop on exit, +15%, +19% in 63-73 days.
  • YRC Worldwide (YRCW), flat base on entry, an inverted dead-cat bounce on exit, +34% in 1 day.

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. You'll never know what true happiness is until you're married...and then it's too late.