OK, it may be time to hold your nose and smile, considering the nice gain we’ve had since I recommended this investment. Smile but preserve your profits. Resistance is far from us date-wise at 116.81, the high way back on 9-17-2009. But the market may respect that, so if you see it pull off that number and turn down, you may want to exit the position. You can always rebuy higher if it goes straight on up.
Here is where the current support is:
KEY TO CHART (courtesy of Worden Brothers, Inc. at FreeStockCharts.com):
RED LINE: Nearest support representing last breakout point.
BLUE LINES: Two prior breakout points that could provide support on the way down.
WHITE LINE: The up trend line that could also provide support.
CONCLUSION: The index has had a nice little run with 3 identifiable breakouts. Preserve your profits by either selling around here or slightly higher (doubt we’ll see that today but you never know) OR you can sell using a stop below here. The gains from today are already fading and the overall stock market is a bit weak, so we’ve likely seen the high for the day.
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Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.