As of 01/26/2021   Indus: 30,937 -22.96 -0.1%     Trans: 12,643 -206.55 -1.6%     Utils: 864 -7.76 -0.9%     Nasdaq: 13,626 -9.93 -0.1%     S&P 500: 3,850 -5.74 -0.1%	YTD  +1.1%    +1.1%   0.0%    +5.7%    +2.5%	Targets    Overview: 01/13/2021     32,000 or 29,600 by 02/01/2021   13,500 or 12,300 by 02/01/2021   890 or 800 by 02/01/2021   13,750 or 12,700 by 02/01/2021   3,900 or 3,625 by 02/01/2021
CPI (updated daily): on 1/25/21

As of 01/26/2021   Indus: 30,937 -22.96 -0.1%     Trans: 12,643 -206.55 -1.6%     Utils: 864 -7.76 -0.9%     Nasdaq: 13,626 -9.93 -0.1%     S&P 500: 3,850 -5.74 -0.1%	YTD  +1.1%    +1.1%   0.0%    +5.7%    +2.5%
Targets    Overview: 01/13/2021     32,000 or 29,600 by 02/01/2021   13,500 or 12,300 by 02/01/2021   890 or 800 by 02/01/2021   13,750 or 12,700 by 02/01/2021   3,900 or 3,625 by 02/01/2021
CPI (updated daily): on 1/25/21

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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