Day Trading & Forex Forum

AndreiC

Hello Everyone,

This is my first post to this forum...i am a novice trader ( started January this year )...so don't be hard on me..

Ok...i have atached a daily and weekly chart of NASDAQ: CERN ( Cerner Corporation ).
Let's start with the daily chart. As you can see since May the price was bouncing up and down in a tight chanell with a high of 48.75 in june.

On last week Friday boom big gap up...intraday up till 50.00 down till 48.75 ( june high...coincidence?..maybe ) and closes at 49.34

Volume is on our side so this should be a long signal.

Now if we look at the weekly chart we can see that the last week close is the first time when prices close above 50 week moving average ( the brown line ) this year..another long signal i may say.

However i see a major resistence line around 50 on the weekly chart and i suspect it won't be an easy one to break.

You can see now my dilema?...i want to enter long but i am unable to see a good reward/risk entry point...

Attached Thumbnails

   

tomorton

I think you're answering your own question. There may be resistance at 50.00, so you may decide it is safer to wait for this to shown to be insignificant or to be broken, confirming the break-out from recent congestion before going long. At that time you could also wait for a temporary pull-back in the uptrend so you don't have to enter on a high price and a new swing low confirms change of trend to up. After that, the price may rise without much resistance to 60+ or even 65+. (As long as you feel its a good time to be long in this sector and market of course.)