As of 10/23/2020   Indus: 28,336 -28.09 -0.1%     Trans: 11,880 +131.58 +1.1%     Utils: 894 +2.40 +0.3%     Nasdaq: 11,548 +42.27 +0.4%     S&P 500: 3,465 +11.90 +0.3%	YTD -0.7%    +9.0%    +1.7%    +28.7%    +7.3%	Targets    Overview: 09/29/2020     29,300 or 27,400 by 11/01/2020   12,000 or 11,000 by 11/01/2020   915 or 840 by 11/01/2020   12,800 or 11,300 by 11/01/2020   3,700 or 3,400 by 11/01/2020
CPI (updated daily): on 9/25/20

As of 10/23/2020   Indus: 28,336 -28.09 -0.1%     Trans: 11,880 +131.58 +1.1%     Utils: 894 +2.40 +0.3%     Nasdaq: 11,548 +42.27 +0.4%     S&P 500: 3,465 +11.90 +0.3%	YTD -0.7%    +9.0%    +1.7%    +28.7%    +7.3%
Targets    Overview: 09/29/2020     29,300 or 27,400 by 11/01/2020   12,000 or 11,000 by 11/01/2020   915 or 840 by 11/01/2020   12,800 or 11,300 by 11/01/2020   3,700 or 3,400 by 11/01/2020
CPI (updated daily): on 9/25/20

Bulkowski's Frontier Oil Trade

Frontier Oil Trade: Setup

In November 2010, I became interested in Frontier Oil (FTO) stock, shown in the figure. Buy indications? The stock was trending higher along with the industry but not the S&P 500 index.

On the weekly scale, I found a flat base pattern.

The commodity channel index (CCI) said to buy the day before. The RSI and Bollinger bands said nothing of interest. I usually ignore all three anyway...

I saw overhead resistance at 17 and 25, so with the stock trading at 15.50, there was nearby overhead resistance. I considered this a long-term holding, so I used no stop.

This is what I wrote in my notebook about the trade: "Chart pattern traded: Descending triangle, trendline breakout, and flat base. Descending triangle is long-term from peak in June '09, but bottom is irregular. Trendline is on top of the descending triangle. Flat base goes back to Jan 2009.

"Buy reason: Upward breakout from down trendline on weekly scale since June 2009. Overhead resistance at 17 is going to be a problem. And who knows about environmental regulation going into 2012. I don't see this doing much, but it could begin trending based on the monthly scale and past rises followed by 1-2 years of flat movement."

I bought the stock and received a fill at 15.47 on 11/26/10.

Frontier Oil Trade: Sale

Fast forward to mid February. With price shooting up in a fast, straight-line run, I decided to protect some of my profits with a stop. From my notebook, "2/16/11. I placed a stop below February 14's low, at 24.68. This is 3-lines back (including today's). I want to make sure I capture the rapid rise upward with a trailing stop."

I raised the stop again, on 2/17. "2/17/11 stop raised to 25.35, below 3 day low."

I show the February 17's candle at A so the low three lines back (including A) is where the dashed line is. A week later, the stock hit my stop and took me out at 25.35 for a 64% gain in about three months.

-- Thomas Bulkowski

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