June 3, 2011

The time is right to start bottom-fishing FFC

The meltdown in the last week is creating lots of buying opportunities. I got out of FFC at the right time fortunately, but I like this stock so am looking for a rentry point. This planned trade is  some bottom fishing with a small order about two days price action below the current low.  As the candles are still penetrating the lower bollinger band the downtrend could continue for some days yet.

Signals for re-entry in the order that they will appear are below. If all three of these signals occur next week, this will be all go and I will adjust the buy order to meet the market price, or increase the position.

1. Green candles trading entirely inside the lower bollinger band
2. Green and pink EMAs closing together.
3. Green EMA flat or climbing.
4. Three green candles in a row, and it will be time


This stock pays a monthly dividend, so can be an income stock as well.

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