CERN (gap down)
Gap down stock from IB scan. After an initial recovery, weakness is evident on the 3rd bar. The 4th breaks the OR (also whole number) and then recovers. However we are unable to regain the OR on next candle. This 5th is bearish off the OR and whole number confirming these as resistance and NR7 bar. This is our short trigger.
Entry: 37.82 Stop: 38.10
Fib Ext: 37.02
1R=37.54 2R=37.26 3R=36.98
We fall nicely after entry and move stop to breakeven as the 1R level is passed. Was hoping it would reach 2R, but market was bouncing off oversold levels and so we take partial as the stock also recovers. The rest is left to run and is stopped out at breakeven on the pullback. A bit of a shame as it then proceeded to fall to the Fib Ext level. Overall just a small gainer +0.75R.