Trend Line Tests.

Trend lines are great to a point.  That point usually occurs after multiple tests of a particular line.  EMES has now running heavy against the 10 Week average.  I've bought puts the last two times it hit the line and then reversed (wait for confirmation).

My current thought is that it is obeying the line too well and running into it too frequently.  By comparison, the uptrend only ran into the 10 Week Average 4 times total before the levy broke.  I will trade this one either way but my present view is that this one is ready to break to the upside. It needs a definitive close above the magic line and probably a successful back test before the bulls will be back in control.

Trade Plan: Sit on hands for now.  If hits on a bullish day and then reverses, buy puts with view of a 1-2 day swing trade.  If it closes above, wait until back test.  If back test does not come let it go. If there is a successful back test buy heavy.

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