ACIA One of the momentum IPO , it has been on a nice uptrend since July breakout at 45. Stock was on our blog watch list for a flag breakout trade as it has been consolidating on low volume around rising 8 day moving average. You can see the on chart, stock has more volume on green days and low volume on red days.I wrote in blog, if this goes over 114 , there might be a potential flag breakout. At this range bound market, it is always better to get in a flag breakout than a horizontal flat top breakout. We had decent day trade on this from 115.20 to 126.55.
Let’s dissect the intraday chart on how the trade played out for us.
1. Sigh of strength is stock when stock gaps up. Even though volume was light at open but open with a gap usually a sign of strength.
We don’t usually recommend chasing the gap open right away but wait for some type of setups.
2.Setups came once the stock pullback to rising 9/20 EMA and vwap and previous days resistance 114.60 and formed a base. Now you have many things lined up on all time frames to enter a trade. Daily had flag, intraday pullback to support and EMA and another flag pattern.
- We entered long around 115.30, right at the start of flag break. Stop was below 114.60. .70c risk with reward previous high 125 and more. Potential $10+ gains.
We started selling shares 119.80, 124.70 and 126.55. Not bad with .70 risk , we caught 11.25 gains on our last shares.
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