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Long CF at $148.49 - Here's Why

December 07, 2011 – Comments (1) | RELATED TICKERS: CF

I jumped into CF Industries Holdings (CF) this morning as a swing-trade. The trade may or may not end up being profitable - but that is besides the point for this discussion. What I want to do, is show you WHY I traded CF.

Notice how on the 5min, 30min and daily chart they all show bullish setups. 

On the 5min chart of CF you have a nice breakout followed by a bull-flag pattern that provides an ideal entry. 

On the 30min chart you have a triple bottom, followed by a breakout of its base that it has formed. 

And on the daily, you have a nice downtrend that shows some accumulation at its base, and ready to breakout to a move higher, as well as a move above the 200-day moving average.

If it dips below $145 which is around the day's lows, I'll bail, as I'll have little incentive to hold this stock beyond that point. 

And there you have it!

Here's the multi-time frame breakdown on CF.