FAS has exceeded the longer-term channel shown on the hourly graph (right). This may well indicate a pending blow off, where prices peak, then plummet, on tremendous volume. Point & Figure target is at 76, but that is now within a day's movement.
If one was already holding FAS, handling the blowoff is best done by setting a stop loss immediately under the previous day's low, thus taking advantage of continued upward momentum, yet not participating in the inevitable collapse. Moving the stop loss up during intraday trading could improve one's profits, but admittedly does increase the chance of getting stopped out early.
Keep in mind, that should FAS turn down, FAZ, its mirror, will go up.
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