IMMR One of the trade I took on yesterday 5/03/13. Stock had earning on 05/02. Next morning it gapped up over the flag. For this type of trading I usually use the first orderly pullback to establish a position.
Let us check out the intrday chart for last 2 days to see how it played out. This chart will provide you some strategy for playing continuation trading setups. Basically it means stock had a strong run day before and whether it can “Continue” to run he next day.
1.Morning earning run. 1st pull back to 9 EMA .
2.Long at 11.72 with stop below 11.60.
3.Sold ½ 12.20 with .60c gain and .12c stop.
4.Intraday breakout . I sold most shares 12.70 and kept some token shares for swing. After all this a Bull Market!
5.It didn’t have a great close yesterday but notice 20 EMA on 2 day chart holds.
6.Today Stock opens at 9.50, holding that 20 EMA from yesterday and break out of 2 day flag pattern around 12.63 . If you wanted to play continuation trade, this is your cue! 12.63 long with stop below 12.50.
7.Over 12.75 fresh new buyers/crowds stepped in for continuation trade.
8.Explodes higher to 13.97. I sold my last shares finally at 13.72. Locking in $2 gains.
Hope this helps.
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