Another difficult day today, with not many opportunities.
GG (gap down)
After gap down we have a recovery on fist two candles before the down move continues. The 8th candle is bearish and NR7 and it moves off from the ema and also closes weak itself. This is our trigger.
Entry: 34.95 Stop: 35.30
Fib Ext: 34.04
1R= 34.60 2R=34.25 3R=33.90
This is a higher risk trade since we are opening our position inside the OR. However I liked the down move that preceded it and also the bounce off the ema above combined with a weak narrow candle. Although in hindsight, maybe not the best idea to trade it.
The candle after entry was promising as it falls below the OR. However the stock bounces back quickly on the next candle which closes back above the OR. This caused us to close our position for a loss.
KGC (gap up)
The first candle is indecisive. The 2nd is an inside bar then the 3rd breaks thru the OR. The 4th is also red and a dragonfly type candle which tests the OR as resistance and still closes below the OR. Ideally the ema could have been closer, but the pattern candle combined with the S/R pivot made it worth a try.
Entry: 18.46 Stop:18.76
Fib Ext: 18.14
1R=18.16 2R=17.86 3R=17.56
The next candle is weak adding to our confidence in this trade. After that it just drifts slowly sideways then eventually down in the last session. We close at end of day at the 1R level.
Overall a bit of a scrappy day, with not much going on. I did miss a trade in RTI which would have given good rewards.
4 comments:
Nice job on KGC, it seems like most other bloggers scratched or lost money today. For RTI what do you see as the entry?xqb
scrappy was a good word.
chartguy
Well one loser and one gainer, which is ok on a choppy day like today.
RTI > after gap down, we fall below the OR with weak red candles before retracing up/sideways where we hit resistance of the ema. The 9th candle is a red gravestone doji type which bounces off ema and also off the whole number $43 which is acting as resistance. This candle would have been our trigger.
oonr7
:-)
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