CAF Trade +7%
by Mike Paulenoff
March 20, 2015 • 12:00 AM EDT
This week we closed a trade on the Morgan Stanley China A Shares (CAF) for a 7.1% gain.
The stock looked poised to break out of a pennant pattern back on March 12 when we posted the short-term trade set-up at 30.50.
CAF surged on Monday and Tuesday, reaching an intraday high of 33.19. We raised protective stops, and finally took profits at 32.68 on Thursday, March 19.
The stock is at highs last seen in December 2009, and points higher to a target zone of 34.50 to 35.80.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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Mike wrote: "During the past week, PENN has been in the grasp of a corrective process (no doubt exacerbated by the announcement of a secondary offering on Thursday morning). The correction has pressed PENN into important support at 62.00 that extends down to 57.60, and includes the up-sloping 20 DMA, now at 62.06. As long as any selling pressure is contained above 57.
