The 247Bull.com trading portfolio makes its first trade

Over the last few months 247Bull.com has analyzed and explored the successful methods used by some of the great trend following traders. We have now launched a new trading portfolio which is dedicated to taking advantage of these methods and tracking our progress.

The type of market setups that we are looking to capitalize on, were described recently in the articles: What would Jessie Livermore be buying if he were alive today? and Two potential trade ideas to keep an eye on.

In essence, we are looking for companies that are breaking out of short or medium-term consolidation patterns in the same direction as both their prior trend and the overall market trend. The approach, which is purely technical, requires that we keep one eye on general market conditions and the other on companies that are approaching a potential breakout.

Active trades

Yesterday we went long Kimberly-Clark at $87.25 as it broke above its October 2012 high. As the chart below shows, the company traded in a range for many months, testing overhead resistance on multiple occasions and forming a triangle consolidation pattern with an upward bias.

A stop loss has been set at the $85.00.

A 1 year daily chart of Kimberly-Clark Corporation (NYSE:KMB) (Click on the chart for a larger version)

A 1 year daily chart of Kimberly-Clark Corporation (NYSE:KMB) (Click on the chart for a larger version)

Chart courtesy of stockcharts.com

Potential future trades

There are several companies that have not yet broken out, but exhibit similar characteristics to KMB. The first of these is M&T Bank Corp., which as the chart below shows, is on the verge of breaking above its October 2012 high. A decisive move up from the current price of $104.52 would represent a bullish entry point for going long the stock.

An 18 month daily chart of M&T Bank Corp. (NYSE:MTB) (Click on the chart for a larger version)

An 18 month daily chart of M&T Bank Corp. (NYSE:MTB) (Click on the chart for a larger version)

Chart courtesy of stockcharts.com

The next company that has the potential to stage a decent upside breakout is HCP.

On three separate occasions HCP has challenged overhead support but as of yet it has failed to breach it. A breakout through overhead resistance at around $46.75 would be bullish for the stock and would represent a decent entry point.

A 1 year daily chart of HCP, Inc. (NYSE:HCP) (Click on the chart for a larger version)

A 1 year daily chart of HCP, Inc. (NYSE:HCP) (Click on the chart for a larger version)

Chart courtesy of stockcharts.com

Finally we are keeping a close eye on is Kimco Realty Corp. which is displaying similar behaviour to the other three.

An 18 month daily chart of Kimco Realty Corp. (NYSE:KIM) (Click on the chart for a larger version)

An 18 month daily chart of M&T Bank Corp. (NYSE:MTB) (Click on the chart for a larger version)

Chart courtesy of stockcharts.com

Going forward we will provide regular updates on our progress. We will track active trades via a number of technical indicators, but will remain long until the uptrend fails.

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