As of 03/27/2024
  Indus: 39,760 +477.75 +1.2%  
  Trans: 16,029 +177.70 +1.1%  
  Utils: 875 +23.30 +2.7%  
  Nasdaq: 16,400 +83.82 +0.5%  
  S&P 500: 5,248 +44.91 +0.9%  
YTD
 +5.5%  
 +0.8%  
-0.8%  
 +9.2%  
 +10.0%  
  Targets    Overview: 03/13/2024  
  Up arrow40,000 or 38,500 by 04/01/2024
  Up arrow16,300 or 15,350 by 04/01/2024
  Up arrow885 or 830 by 04/01/2024
  Up arrow16,600 or 15,200 by 04/01/2024
  Up arrow5,350 or 5,100 by 04/01/2024
As of 03/27/2024
  Indus: 39,760 +477.75 +1.2%  
  Trans: 16,029 +177.70 +1.1%  
  Utils: 875 +23.30 +2.7%  
  Nasdaq: 16,400 +83.82 +0.5%  
  S&P 500: 5,248 +44.91 +0.9%  
YTD
 +5.5%  
 +0.8%  
-0.8%  
 +9.2%  
 +10.0%  
  Targets    Overview: 03/13/2024  
  Up arrow40,000 or 38,500 by 04/01/2024
  Up arrow16,300 or 15,350 by 04/01/2024
  Up arrow885 or 830 by 04/01/2024
  Up arrow16,600 or 15,200 by 04/01/2024
  Up arrow5,350 or 5,100 by 04/01/2024

Bulkowski's Frontier Oil Trade

Frontier Oil Trade: Setup

Picture of FTO on the daily scale.

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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