ICLR is setting up for a bullish seasonal trade.
The seasonal chart (not predictive of future results) shows that 8 out of 8 years, it has posted min. a 40 cent again from 6/1 – 6/25.
2007 could be the first year where it doesn’t post a profit for this timeframe. As a result, we are going to analyze the chart. Here is the chart analyzed.
Looking at the chart, it has been a very nice bullish pattern. This is show through the white regression lines on the chart.
The Ichimoku indicates there is a bullish sentiment. However, that could change. The Tenkan Sen and the Kijun Sen are very close to each other. Also, the Chikou Span can go bearish fast is prices goes down $2.00. Therefore, we are going to enter on the next resistance value shown in yellow. The stop will be a couple of points (.40cents) below the Kijun Sen. Therefore, the total stop value is $1.50 below the current price. This should be enough to cover all the “noise” from the day traders. The ideal stop is 42.87, the bottom of the Kumo cloud where completely negates the bullish sentiment. However, that is for the aggressive trader. The conservative trader will use the one outlined in the chart. If you are playing this aggressively, please decrease the normal number of positions you hold by half to min. risk.
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