After entering the Abbott Labs (ABT) trade on 2/16 @ $46.77 and the May 42 call @ $5.05 we stayed with the trend until the beginning of April. At that point the call had yielded a great return. I was looking to exit at the first sign of weakness. Two confirming signals: Fibonacci extensions and candlestick formations, alerted me to exit on 4/5. ABT was approaching the 100% Fibonacci extension and a bearish reversal signal, the dark cloud cover appeared. There are four main candlestick formations I watch for that might signal a bearish reversal: dark cloud cover, harami, bearish engulfing pattern and a doji. I took this warnings and exited with a >60% return in less than two months.
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