Thursday, July 04, 2013

Some more resilient uptrends

Here are three more UK stocks whose trends have remained intact despite the volatility seen in the indices. Again, this shows how trends can persist, and that simply closing profitable trades because of weakness in the general market may not be the best way to go. When you are in trades like these, let them play themselves out - you never know how high they will go.

The first is fashion chain Ted Baker, which has been trending up since late last year, without once hitting its trailing stop. Using the system rules, this would now be showing a profit at least 17 times what was originally risked!


Xaar shows a few gaps up within the trend (I assume on positive news or earnings releases). This did touch its trailing stop in early April, which should have forced you out of the original trade, but then quickly reversed back to the upside. The subsequent gaps up may have made it more difficult to re-instate a long trade, but there would be no way you would even contemplate shorting this stock, despite the sharp move up.


Finally, children's retail outlet Mothercare has moved nicely up after forming a based through March and April, and is now displaying a stable uptrend, with the trailing stop now moving up in parallel to price.

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