Quick trading idea post as I bought an initial position in CLW – Clearwater Paper. Although the stock is a slow mover and definitely not your typical growth stock the technicals are compelling. The stock reacted well to earnings, put in a bullish white candle and is now consolidating and building out a very tight flag. A breakout to the upside would coincide with the stock printing new all time highs. It would also be part of an ABC pattern.
My main rationale for entering the stock is a different one though. Healthy bull markets correct by means of sector rotation. CLW is a good example for this principle at work. As you can see on the chart the ABC pattern implies a target around 55$. The stock could easily go higher from there. Let’s see what happens.
Click chart to maximize:
The key to trading success is to let everyone else fight for pennies as you wait for easy dollars. – Mark Minervini
Twitter: https://twitter.com/tischendorf
Investing in your education always pays. Learn how to read chart patterns like a pro! Tischendorf Letter Premium: https://members.tischendorf.com