He doth protest too much. Tue Mar 16

I went through a bunch of charts last night and I wondered what I was smoking when I was trying to justify holding on to my Fortescue long. I still like it in the medium term, say as a 4 to 6 week investment, but in the time frame I trade it's no longer anything like as compelling a trade.
I needed to see some real acceleration and instead I got a series of fractional new highs over 3 trading days followed by a fast sell off.
Here's the 60 minute chart.

Click to enlarge

The new high and failure to follow through is something I've been shorting recently on 5 minute charts and there's generally at least one more leg down.

Anyway, I metaphorically slapped myself round the face last night and hoped for some sort of retracement rally that I might be able to sell into. I was lucky enough to get it so I'm out of the last of the Fortescue at 486. No harm done in the end, except the opportunity to sell out yesterday in the mid 490s. The net result was break even and I'm obviously still looking for a buying opportunity in this stock which I hope will come at a lower level.