Monday, January 26, 2015

CL on watch for a purchase

I bought a starter position in CL in January and almost the worst possible entry @$70.61. I'm looking to add, but i'm going to try to use a little trading knowledge and patience for a better entry for my 2nd buy.

On the daily chart is has broken the 200 SMA and the lower bollinger band.  The last resistance around that level was $66, so I'm now watching to see if that will act as support.  Next stop below that is $63.50 and $60.75.

Daily Chart



Weekly Chart


Below $66 i'm probably going to buy some PUTS to $63.50. The only thing that will (probably) prevent me from grabbing PUTS is earnings.  I'm no expert at all, but I've learned that stocks can go down on good earnings and up on crap earnings. It's such a big unknown. so we'll wait and see. Past earnings havent really given a good indication on if the stock gets a good pump or dump.  I'm also ok if it bounces and $66. Guess we'll set up some alerts and see. I'll post back on what I do.

2 comments:

  1. Buying a stock and then watching it go down can create some near term anxiety but when having a very long term view it shouldn't matter that much. As long as dividends continue to come in and rise every year you should be OK. That being said, valuations should be carefully considered before making any investment. I would love to add to my CL holdings but not at current prices/valuation. I'll wait for a better buying opportunity as they inevitably always come. Thanks for sharing and average down your cost.

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  2. love your blog. thanks for the comment. I actually missed the entry. need to do a post to update. instead i bought MKC since it was down and averaged down on PG

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