Climatic Low. PGR fell a
distance from its 20-ma last week that suggests
it's likely ready for a tradable rebound. Then
the daily range expanded considerably wider than
the prior trading sessions and volume became
climatic. This also suggests a short-term
reversal is close. Next day was the day that now
tells us the turn is at hand as PGR closed above
its opening price for the first time in eight
trading sessions and held above the prior day's
chart courtesy of
Tip: Daily price range
expansion after a several bar decline suggest a
reversal is most likely close at hand. When its
pattern is accompanied by expanding volume it
increases that likelihood. This combination of
price and volume action suggests a capitulation
to the selling pressure and a tradable reversal
after a Change of Guards (COG).
Buy once it trades above previous trading day's
high ($47.17). Once entered, stop will be placed
below the low made on previous day.
A move of 1.50- 2.00 There is a small base of
resistance in the 48.50 area that can been seen
on the intra-day chart. A reaction there is
likely. The significant resistance area is
higher in the 49.50 area. Take it a step at a
time and monitor along the way. Entering is the
easy part. MEDIUM RISK
PGR went up almost $2.00
dollars from entry, the objective has been hit.
That said PGR looked like it can move higher if
the market does not fall apart.