The daily chart of JEC shows price has trended steadily higher the last four months, gaining 30% since the beginning of November. The recent pull-back from the 52-week high may prove to be a very nice swing buying opportunity.
As a matter of fact, the pull-back from recent highs led price to drop right into a solid source of support via 3-way confluence.
Tuesday's trading activity led to the formation of a bullish reversal candlestick pattern that developed right at the monthly pivot range (pink lines), quarterly VWAP (blue dotted line), and within the trigger zone of "stacked & sloped" pivot-based moving averages (grey lines).
This trifecta of support could lead to a solid 3- to 5-day advance in the days ahead, and potentially more.
The Game Plan
Use the Retest Entry technique to trigger a Long position at $47.40 within the next day or two, using a 1/2 ADR stop at $46.80, and targets at 48.94, 49.13, and 49.85.
Keep in mind, if price breaks (and closes below) the monthly pivot range at 46.36, the trade is over, as it no longer satisfies the conditions of a pull-back swing trading opportunity.
Heating Oil Update
my last blog post, I wrote about Heating Oil and its potential to move back toward 3.106. This target was reached in 6 days, and continues to push farther.
In just nine days, this trade has made 168% on margin. Beautiful.
Let's see how this JEC setup plays out!
Follow us on Twitter: http://twitter.com/PivotBoss