Hi all, @szaman here, GMCR was a huge earning gapper today. I traded GMCR in the chat today twice. First was on open at 35.10 and later Intraday break at 36.20.Here I will talk about why I took the morning trade. Please click on the chart and follow the text.
This is a Intraday chart with Pre Market price levels. So I watch GMCR in pre market. Stock made a high of 36.80 and dropped to 34 .35. Then it started making higher lows with immediate resistance at 35.10. Now my plan was when the market opens and it open below 35.10.
A move back over 35.10 should cause the stock to run .
Stock opens at 34.55 and quickly move that magic number 35.10.
So I went long at 35.09. That thrust moves the stock to 36.25. Nice %1.25 gains. Not bad for breakfast money !
Stock eventually took out that pre market high 36.80 and we were also involved in that trade.
One more strategy for your trading tools is to gauge pre market price levels. Hope it helps.