As of 06/04/2020   Indus: 26,282 +11.93 +0.0%     Trans: 9,575 +134.48 +1.4%     Utils: 814 -17.21 -2.1%     Nasdaq: 9,616 -67.10 -0.7%     S&P 500: 3,112 -10.52 -0.3%	YTD -7.9%   -12.2%   -7.4%    +7.2%   -3.7%	Targets    Overview: 05/29/2020     27,000 or 24,000 by 06/15/2020   9,800 or 8,200 by 06/15/2020   850 or 750 by 06/15/2020   9,800 or 9,000 by 06/15/2020   3,200 or 2,850 by 06/15/2020
CPI (updated daily): on 5/15/20

As of 06/04/2020   Indus: 26,282 +11.93 +0.0%     Trans: 9,575 +134.48 +1.4%     Utils: 814 -17.21 -2.1%     Nasdaq: 9,616 -67.10 -0.7%     S&P 500: 3,112 -10.52 -0.3%	YTD -7.9%   -12.2%   -7.4%    +7.2%   -3.7%
Targets    Overview: 05/29/2020     27,000 or 24,000 by 06/15/2020   9,800 or 8,200 by 06/15/2020   850 or 750 by 06/15/2020   9,800 or 9,000 by 06/15/2020   3,200 or 2,850 by 06/15/2020
CPI (updated daily): on 5/15/20

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

More

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:

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 registered trademarks of their respective owners.

Home Advertise Contact Donate Links Privacy/Disclaimer ☰

Patent: A method of publicizing inventions so others can copy them.