WBC, a recent Buffet purchase, is consolidating from around 47-52. There is clearly a downward sloping resistance line on top of the consolidation pattern leading it to look very triangular. My approach to triangles is to wait for entry until a decision has been made. That is, until it breaks out or breaks down. Once the stock has made the decisive move, you can then hop in and catch most of the move. Whereas, if you guess which way the stock will move right here, you are at great risk of being wrong and losing money.
The breakout/breakdown will come. Just be patient and wait for it. Once it comes buy it or short it and place a stop below or above the breakout/breakdown point.
No comments:
Post a Comment