Via Energy and Gold.com:

The best trade setups occur when many different factors align simultaneously. Case in point the IBB (Biotech iShares) chart today:

 

IBB_Daily_9.28.2015

Here are the factors which lined up simultaneously today:

  • ‘Oversold’ (RSI-14 below 30)
  • Down 7 consecutive days
  • Below lower 3-standard deviation Bollinger Band
  • On track for more than 4x average daily trading volume (indicative of capitulation selling)
  • Achieved measured move target from head & shoulders top pattern ($290)
  • Testing previous support zone ($285-$290)

We took a long in IBB at $285.86 using a $278.79 stop-loss. The trade entry was shared in real time in the CEO Chat Trading Room where we will continue to update readers as the trade evolves. The time frame here is 1-3 days. This is not a long term investment. Come join the conversation at CHAT.CEO.CA!!

The time frame on this trade is 1-3 days. This is not a long term investment. 

UPDATE (9/29/2015 10:20am): We exited this trade about 30 minutes after the market open this morning for a 3.83% profit.