SLCA gapped up nicely on good earning news today.As you can see on daily chart , the stock gapped open at 20.94 ,over both rising 20/50 MA and not too far off the daily break level 21.50.It quickly proceed over 21.50 breakout area for me get an entry. For this type of plays i usually wait for to see whether buyers shows up on first pullback .
Let’s see the intraday chart to see how the trade was setup.
1.Heavy volume gap up followed by low volume pullback.
2.Bounce at rising EMA and 23% retracement and made small base.
3.Buy long at 21.25 with stop below EMA and retracement area 20.85.
4.Stock trends up nicely off EMA.
5.Intrady break. Once it broke the intraday high.Measured move target was the ‘length’ of ascending triangle AB=CD, which is 23,40 area. The stock makes high of 23.56, overshooting my target a bit .
I sold my shares at 23.40 for 9% gain with .45c risk
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