Trade Review: GENE, Game plan and execution.

GENE one of the momentum stock that attempted to break out on Wednesday. It was not a successful breakout as the stock was faded later in the day and it closed back in the range.

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Since break out was not successful , it is safe to assume there will be many trader that will initiate a short trade with stop lose above Wednesday’s high. So our game plan was if the stock takes out Wednesday’s high, it will create a short squeeze as the shorts covers and momentum crowd will chase long. Friday stock finally broke  out and we had a nice profitable trade in this in our chat room.

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Let us look at a intraday 5 minute chart to explain how we traded this stock.

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1.Wednesday late day weakness in stock causing shorts to piled in on failed breakout assumptions. Most will have a stop on Wednesday high.

2.Friday stock opened with small gap up and moved fast enough to trigger stop losses on the shorts.

3.Now that the stock finally in breakout mode First pullback /consolidation provided fresh entry for momentum traders as we bought the stock 5.33.

4.Stock continued to create flag after flag providing us more opportunity to add into our position.

Stock made a high of 7.68, that is over 44% gain from our 5.33 entry!
If you want to learn how to trade setup like this then you need to join our 60 day Bootcamp course. Our program is designed in such a way that you come out of it ready to trade live in just 3 months. We teach you everything from risk management to scanning to trading strategies. I also share my profitable intraday trading strategy which will make you money short term regardless of Market condition. The class is one of a kind, see why you should sign up for the course here . You will also have access to a private community where you can ask questions, share charts and talk with the instructors or other traders. You can also check out the testimonials from our students.
Also if you are interested in our trade alert services and chat room , take a free trial! Check them out here.
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