MGAM, We traded this stock with 6.5% gain in the chat room with 1.17% risk. This stock gapped up in May and did nothing since then. I have been watching this stock for a while now. It filled that gap to 11.50 twice and should have died during the Market weakness. But this one keeps on bouncing on gap fill and 50 SMA.That to me means there are buyers for this stock.
I became interested in this name on Monday as I t saw it was printing small doji candles on the daily chart with decent volume without price not moving much. To me that’s a sign of accumulation. Keep in mind with any stock, if you see increasing volume without much price change, pay attention, the stock might be about to make a move.
I set an alert for 12.80 as trend line break, instead of flat top/horizontal break out. Most of us love to play horizontal break outs as they are easy to spot and clean number to play. Trend line breaks out could be a powerful thing as most of the time they lead to horizontal break out and by the time it does break out , you have nice cushion already. You can always sell some at break out numbers and chill with nice profit even if the break out fails. If you have followed my trades , you will notice, with intraday trades , I tend to buy before the actual break outs if the setup is ripe.
60 minute view, beautiful trend line/ Symmetrical triangle break and alert triggers at 13.80.
Intraday view 5 minute chart view:
- Long 12.80
- Stop blow 20EMA 12.65. .15c risk with target 13.70 then break out 14.53. Almost 10:1.
- Sell some 12.98
- Sell more 13.50
- Notice how 9 EMA act as spring board to push higher. Beauty trend!!
- Added more on this 9 EMA retest.
- Sell more 13.64
Hope this helps. We trade setup like this day in day out in the chat room , long or short. As long Market moves , we will find something to trade.