When I enter a stock, I always like to have at least 2 reasons why I am trading the stock.. thats always been my rule and has worked for me. The reasons can be anythig: price resistance break, moving average break, big earnings report, a PR moving the stock, expanding volume, etc.. just as long as I have two great reasons coupled together.
For example, if you look at this old chart of BKS, the two reasons why I would have bought the stock at 14 would have been the (1) 200dma break and(2) the multiple taps of the 14 level which served as price resistance.
On Friday, we traded FB for a nice .40 cent gain intraday. Here is a look at the trade and the reasons why I took the trade.
1. Round numbers on highly watched stocks are big spots (33)
2. Stock tapped 33 level multiple times (4) before it finally broke.. causing the breakout to be powerful