I jumped into CF Industries Holdings (CF) this morning as a swing-trade. The trade may or may not end up being profitable – but that is besides the point for this discussion. What I want to do, is show you WHY I traded CF.

  • Notice how on the 5min, 30min and daily chart they all show bullish setups. 
  • On the 5min chart of CF you have a nice breakout followed by a bull-flag pattern that provides an ideal entry. 
  • On the 30min chart you have a triple bottom, followed by a breakout of its base that it has formed. 
  • And on the daily, you have a nice downtrend that shows some accumulation at its base, and ready to breakout to a move higher, as well as a move above the 200-day moving average.
  • If it dips below $145 which is around the day’s lows, I’ll bail, as I’ll have little incentive to hold this stock beyond that point.  

And there you have it!

Click on the image below to enlarge the chart. 114b213a641be671910f3414.png (1526×1007)

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