LOCK is a beaten up former momentum stock name. It reported earning on 5/2 and made a high of 9.60 before fading the gains. I have been watching this stock for a while now, so I setup an alert for 9.60 whenever it decided to go with a target to 50 MA 10.05 area.
This morning stock caught my eyes again as it was basing right below the alert 9.60. Ideally this exactly what you want to see, a base below the actual alert number. The trading was a bit frustrating but it all worked out at the end. Let us look a the intraday charts to see how it played out.
1.Base below alert 9.60.
2.Long 9.53/9.47 area with tight stop under ascending triangle and 20 EMA 9.49. few in our chat room was stopped out prematurely at 9.50.
3. 9.60 actual alert but choppy follow through initially, stops still remains 9.49. It hits 9.50 area twice.But 9.49 stop holds!
4. 3rd tap breakout over 9.65. Now the momentum finally hits propelling the stock higher to our initial target 10.06.
Hope it helps.
If you are interested learning this type of strategy and more for quick and explosive gains, check out Bulls Trading Bootcamp starting in May 14th. New feature, I will share my explosive money making day trading strategies.
Email for info. thenyctrader@gmail.com
Follow me on Twitter and StockTwits @szaman
