First of all I would like to congratulate all the traders who made this trade. You should now be enjoying at least 20% profit.

Click here for the original trade idea.

I posted the trade idea last May 11th. After a few days PX broke out of its trading range and on the 26th our target has been reached completing the ab=cd pattern. The trade closed at 7.4 without hesitation. There’s not too many buyers at 7.5 so I had to close it at 7.4.

If the trend continues, PX will obviously head higher. I see extreme targets between 8 and 8.4. Why did I bail out at 7.4 if I see it heading higher you ask? Well I’m just following my trading plan, it reached my target hence it should be closed. It is the same as what we did with PAX. Who knew that will PAX will head higher than 1.3?

Let’s move on with our charts.

I didn’t see PX as a long term buy until last week. A forum member posted a chart, drawn on it is a channel pattern having a target near 10. Below is the chart courtesy of egu:

What you see in the chart above is a clear breakout from the channel.

Revisiting PX’s chart, there seems to be an AB=CD pattern forming. If we measure a Fibonacci retracement from the low of 1/19/2007(A) to the high of 11/19/2007(B), you will see that it retraced exactly at 78.6% (10/31/2008) which is going to be our point (C). Since it retraced from 78.6% our target for (D) would be at 127% which is 9.96 or 10.

If everything goes well with PX, it may reach 10 before the end of this year. If you are looking to buy PX, I would recommend that you wait. Let’s wait for a retracement then we go in for the kill.

This is a long term buy.

Recommendation: Wait.