$SLCA gapped up nicely on good earning news today. As you can see on the daily chart, the stock gapped open at $20.94, over both rising 20/50 MAs and not too far off the daily break level of $21.50.It quickly proceeded over the $21.50 breakout area. For this type of play, 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 the EMA and retracement area at $20.85.
4.Stock trends up nicely off EMA.
5.Intrady break. Once it broke the intraday high, the 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 $.45 risk
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