The downside to swing trading stocks in this sector or being shaken out of core holdings by deep consolidations to the 34 ema on the weekly chart for example....is the chance a trader does not reenter long once resistance becomes support again.
My simple strategy when I am swing trading CCJ...is always get back in when the all-time high is surpassed....and scale back in on downside moves between the 21 and 34 ema on the weekly.
I told someone recently I was going to try not to swing trade CCJ this year. Well, I changed my mind when it moved above $80...knowing I can always reenter if it keeps taking out new highs....it seemed ripe for sell-the-earnings price action...it had moved 61% from the PnF breakout in August and 130% from the swing low.
more on the uranium sector...including posts from December thru today:
Edited by hiker, 02 February 2006 - 01:19 PM.