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ELN Breakout Trading

By Johns Wu on Dec 28, 2005

I’ve been experimenting with STOP LIMIT orders lately to trade breakouts. Breakout traders place buy orders that are executed only when an equity trades above a strong resistance. For instance, look at this chart of ELN, one of my favorite stocks.

ELN_breakout_trading_12_28_05.GIF

A breakout trader would place a STOP LIMIT order right above the resistance (the yellow dashed lines). When the stock treads above the resistance, limit orders are executed and breakout and momo traders run the stock up and away from the resistance into blue skies territory. I think breakout trading is a great and safe way to trade high flier stocks like these, and I’ll try to point out any good breakout trade plays in the future.

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This entry was posted on Wednesday, December 28th, 2005 at 3:21 am and is filed under Annotated Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.


5 Responses to “ELN Breakout Trading”


By Anonymous on December 28th, 2005 at 3:49 am

TYSABRI ROCKS!!!!!!!!!

By Anonymous on December 28th, 2005 at 4:06 am

Imagine a boiling cauldron.

The temperature keeps rising as the stew is heating up. The fire keeps getting higher as Tysabri’s return is nearer and nearer.

Then, some fat crooked pig is trying to holding it down. This pig is now sweating bullets as the cauldron is beginning to be controllable. The pig is putting all its weigh but the cauldron is shaking and shaking.

Imagine the pressure when the whole thing explodes. The pig will get roasted … and we longs will eat the pig along with the stew that has the golden eggs.

$13.90 will go straight to $17.00. $15 or $16 will be bypassed.

By Just on December 28th, 2005 at 6:58 am

“Imagine the pressure when the whole thing explodes. The pig will get roasted … and we longs will eat the pig along with the stew that has the golden eggs”

Not sure I’d want to eat eggs laid by a pig into a stew!

Just wanted to comment on the oddly mixed analogies.

By the artist formerly known as DJ on December 28th, 2005 at 7:02 pm

ELN trades a lot like DNDN — both are 18 dollar stocks if they can get their rock star drugs on the market…

By a on December 28th, 2005 at 11:27 pm

Completely unrelated to ELN or other serious commentary:

Maybe the pig was created by that South Korean scientist who recently resigned. Not that his claim of being first to do so holds water. Willy Wilder, I mean, Wonka had similar creatures decades back. You know the miracles of modern science are tasty, Just. Admit it!

-a

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