Perspective – the series

There is one aspect to trading that I discuss often and that is perspective. I see examples  of charts every day that look great on one time frame, like the Daily, but pose a completely different picture when viewed on the Weekly as an example.

There are frequent examples however of multiple time frames cementing a bullish or bearish view on a stock. For an example of this, I bring you 2 charts of $HFC (HollyFrontier):

As you can see on the Daily chart above, the stock is working on a Breakout move over the $36.50 level. Price is currently a good distance above the 50 Simple Moving Average as well and the RSI has a bit more room to run before being considered overbought.

Now for the Weekly chart:

I have drawn the slightly down-sloping Trend Line – price has broken above it in July. However you can see a horizontal resistance line just above from the late 2011 summer highs. Certainly within reach if the market cooperates.

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