Commodities Rally - Potash Corp./Saskatchewan (USA) (Public, NYSE:POT)

The nice thing about mapping out all the support/resistance levels on your favorite stocks, is that you can quickly visualize the perfect entry when price consolidates at or near a previous S/R zone. Also, if you miss the perfect entry, you can gauge whether or not to jump in midway, depending on the profit potential to the next S/R level.

CNQ consolidated at base of resistance setting up an obvious trade with predetermined target (next blue line).

POT - I missed the early entry at $90.00, but found a spot midway to the next level of resistance in the form of a bull flag.

I hadn't planned on trading EBAY, but when it carved out a C&H pattern with NRIB (NR7) as the trigger, I couldn't resist. The pattern failed and I was stopped out. Why?

Well, if we look at the 24 hour chart with the pre-market action, we note that price reversed after topping out at exactly the same price level where the C&H pattern attempted to BO (blue line). I was too rushed on this trade and didn't take the time to look at the price action in pre-market. Important to review PM price action especially for gap trades.