AA,AAUK,ABB,AGP,AGU,BCS,BP,EXM,FDG,IPI,LYG,MCHP,
MI,NLY,PETM,REXX,SKM,TRA,WFR
Not much going on today. Just two trades.
MCHP (gap down)
First candle is weak and we break thru the OR on the 3rd. This candle does close weak, but it's a bit too far from ema for me, so I wait. The pullback comes and we bounce off the OR confirming it as resistance. The 7th is NR3, NR7 which closes below the ema and off the OR. This is our short trigger.
Entry: 31.40 Stop: 31.70
Fib Ext: 30.48
1R= 31.10 2R= 30.80 3R=30.50
We reach 1R on next candle and the chart looks promising. But there is no follow thru and we bouunce back to be stopped out at breakeven.
AA (gap down)
First candle is weak and we break thru the OR on the 3rd. This candle does close weak, and see how it's closer to the ema than MCHP was ? This is our short trigger.
Entry: 40.41 Stop:41.13
Fib Ext: 39.76
1R=39.69 2R= 38.97 3R= 38.25
We take partial at Fib Ext (around 1R) since we are also in the region of$40 level which could prove to be strong support. That is how it turned out and we were stopped out of our remaining position at breakeven. A bit of a shame that we were stopped out by a few cents, as the stock fell away strongly in the last session. If you were trading this last session, then candles 21, 22 would have been good entry points as they were successive NR7 candles and had broken thru the $40 level.
Overall, a difficult day with some minor profit.
2 comments:
Hi TraderAM,
Would you consider FDG (11:30)? thx in advance.
Apart from the 2nd candle, the price action looks good. The 11:30 trigger candle closed right on the whole number, so it all depends on your view of what to use as the trigger price. If you use 2 or 3c, then it would have been triggered. For whole numbers I normally tend to add a bit more, so it wouldn't have triggered. A fine line I suppose.
Having said all that, the chart looks good , it just didn't follow thru on next candle and we would have closed for a loss.
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