Yesterday we took a look at the Hasbro (HAS) weekly chart. The weekly charts put the daily timeframe in perspective and often suggest entry and stop loss levels. I have done my own anecdotal studies of weekly charts over the many years I have been trading. I found that I have a higher degree of success when trading the weekly timeframe. Success meaning the number of profitable trades not the most overall profits. How is this the case?
Trading the weekly timeframe requires wider stop loss levels and consequently smaller overall position size. This limits trading profits. The wider stops keep you in the trade longer. This prevents the kind of annoying whipsaws that seem to take out your stop before reversing, and then moving in the direction you had initially predicted, just without you. Anyway, if you’re having a bad run or the market is too volatile for you, step back and try trading the weekly timeframe.
Back to the Hasbro daily chart. The stock broke above the triangle resistance level situated around $83.25 that we saw on the weekly chart. A strong 3.5% move in Thursday’s session powered it higher. There is little resistance from here to the $91 level which is also the 68% Fibonacci resistance level of October 2019/March 2020 range. The technical indicators have been trending higher since last month’s low. More recently, the 50 day moving average has crossed above the 200 day average, the classic “golden cross.”
So, on Hasbro’s weekly and the daily timeframes, the price action and the technical indications are positive. Now, of course, there could be a short-term pullback and a retest of the $81 triangle resistance-turned-support level, but the intermediate direction of the stock price looks to be higher. The final chart in our analysis is the seasonal chart from the Stockcharts.com website.
It appears that November is the time of year to buy Hasbro. This plays into the bullish intermediate term technical take. The bottom line is, whether you put on a trade or not, that multiple timeframe analysis is a good technical exercise. Also, don’t forget about trading the weekly charts. It can be very helpful.