ARMN- Good Trade For Us- Are We To Go Even Higher?Friends
Had an ever increasing size position in this stock ever since 10.02.2015
ARMN has moved brilliantly, i'm actually surprised how bullish this stock has actually got, I didn't expect it to happen quite so quickly when entering. But these things happen :)
Please note, this company is a non u.s company trading on the NASDAQ. Accumulating normal shares of this company may trade under American Depositary shares. So if you buy ordinary shares as your way of investing you may want to read about that.
ARMN daily
1. Bullish engulfing above the moving averages, breaking these as resistance levels.
2. The candle open after the engulfing was a gap up, showing bullish sentiment.
3. Before this happened, we had lots of reversal candles at the bottom of the range, (hammers, dojis, spinning tops etc) You should always put a stock in your watch list stock when it starts to act like this
4. 18.02.2015, broke the rounded bottom range AND the trend line range simultaneously. Very bullish as these levels were completely ignored.
5. The stock was trading at 61.8 Fibonacci correction of the recent impulse leg.
ARMN daily
1. Dojis, followed by bullish engulfing
2. We were safe to buy in the weekly candle of 09.09.2015 and onwards, as this candle broke the 20 and 8EMA simultaneously. Next target was the 50 on the weekly.
3. Broke channel range, very bullish.
Now step 4: will to be open above the long term channel resistance. This channel has contained the stock for the last 3 years, so maybe we're going to see a break of it? I wouldn't be surprised considering how bullish the stock is.
But the analysis should be on the daily ALWAYS. The weekly is a good trend direction confirmer and can help with entry occasionally but the analysis of entries and exits always sits with the daily. Or even lower timeframe if you trade within those capacities.
Candlesticks give you a very clear picture of the markets condition, and finding candlestick signals in the right places and the right conditions, as well as the moving averages, you can find incredibly bullish scenarios, such as this.
I'm still holding long, until there's a good reason not to be long here anymore.
Remember, using chart combinations significantly improves your odds at trading, and using the right combinations for your trading style will give you a massive edge with a good strategy.
Happy trading guys,
Tom
