Let’s Hit It !!

Alright…before we get started let’s cover some basics.

First, I was brought up as a technician, I believe in it, it works for me. Having said that, it has been my experience that as one descends into the world of sub $10 stocks,  probability that a stock will perform according to the expectations dictated by technical price patterns is reduced.   So let it be known from the start that I apply my technical expertise after scanning with The PPT.   By doing so, I recapture the reduced probability of using only technical analysis for stocks under $10 and greatly increase my probability of success for stocks priced greater than $10.  With this, all stocks and ETFs are in my universe and my holding period can range from a millisecond to infinity.   So  let us now proceed into the wonderful world of banking coin together.

Below is a chart of City Telecom Limited or $CTEL

What we have here is an ascending triangle with the most recent close sitting just 5 cents under the previous high. I like that the 20 dsma, the 50 dsma and the 200 dsma are all sloping up (green arrows) and finally that the accumulation/distribution (AD) is maintaining a higher level throughout the consolidation period of the ascending triangle. This means no one has been dumping the stock and they will be holding for higher prices.

I have noted the entry pice on the chart which is 5 cents above the previous high at 7.15 and plan to enter at that price tomorrow if the stock breaks out of the ascending triangle.

I always use stops and in the case of $CTEL it will be just under the bottom ascending trendline of the triangle. I like to adjust stops as necessary and prefer to be taken out by trailing stop as opposed to a price target. Otherwise I take myself out of trades if I think I have milked it sufficiently or I don’t like how the trade is performing at any particular point.

I have set aside $100,000 in a separate account to trade the picks I post here, but there is no way I can outline every trade I make here. I plan to give these types of ideas and outlines once (maybe twice a day). For those trades that I don’t profile with charts, I plan to post entries and exits in shorter form here to keep everything as wide open to viewers as possible.

There it is, my first call, more to come.

Now hit the showers, but please keep your fucken hands to yourself !!!!

If you enjoy the content at iBankCoin, please follow us on Twitter