WFC (gap down)
After gap down we retrace to the ema and previous day's low. However it can't break thru this resistance , indicating weakness. The entry is based on market downturn couple with this price action.
Entry: 27.62 Stop: 27.99
Fib Ext: 25.72
1R=27.25 2R=26.88 3R=26.51
We move down with the ema and take partial at 1R since we are near the OR low and thus support. The rest is left to run and is stopped at breakeven.
UBS is a weak stock in a weak sector. We move thru the previous day's low in first two candles then come back to test it as resistance on the 4th and 5th candles. Subsequently we trend down past the whole number at $27 and hold this as resistance. The 11th is a gravestone doji type and NR7 and NR3 off ema. This price action couple with market downturn is our short trigger.
Entry: 26.77 Stop: 27.10
1R=26.44 2R=26.11 3R=25.78
We retest the $27 level after entry but then move down with the ema. I wasn't able to watch the market into the close today, so I closed all of my position at the time I had to leave. This resulted in a gain of just over 1R.
Overall, just the two trades today.