A Quick Review of PACR Pacer International

pace20080813

Here at BestOnlineTrades I like to look back on what I talked about and see where things either went right or wrong.  It is useful because it helps me figure out how I might be able to improve in the future or eliminate errors in judgment.  I highly recommend that you do the same.  It is really easy to make a trade and then forget about it, especially if the trade went bad and you lost money.  But if you take at least a little time to review some past trades it could serve you well in the long run.

I first talked about PACR on July 31st, 2009.  On that day the close was 2.49.  Today it is 4.26 or 71% higher.  This was an outstanding setups in many respects.  PACR had a bottom in March and then a double bottom retest in July.  It then went into a compression of sorts in the form of a triangle and the price trigger was activated on July 31st.  The volume on the breakout was outstanding.

The most ideal entry for PACR would have been on July 30th even though it was still inside the pattern.  A buy stop probably would have worked quite well on PACE just above the down trending resistance line.

There are a lot of reasons to like setups like PACR.  You have a retest of a massive bear market selloff and then initial volume coming off the bottom. There was a big price swing on very heavy volume 2 or 3 days before the actual breakout from the pattern occurred. This was a big hint that a breakout to the upside was coming.

Some of the best setups I have seen have been the ones that come right off the bottom because that is where you get the most return in terms of percentages.  After a stock starts getting into the uptrend phase then the risk is higher and the big returns harder to achieve.

So let PACR be a great example setup to keep an eye out for.  If you see a stock that has a similar setup to this please do tell me about it so I can share it with other visitors here!

Posted in Trading Flashback
Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

*

s2Member®