DVN gapped up on the open on news that their Jack #2 test results fully met expectations and that its partnership with Chevron could produce the nation's biggest new source of oil. This was a breakaway gap on 5 times average volume. My entry was shortly before noon - a typical dummy entry as price took out the high of the NR bar just above the base of the resistance zone. I booked 50% of my profit as price reached the 50% Fibonacci extension at $71.70 and sold the balance as price tagged the full extension at $74.40.I basically followed the methodolgy outlined in last night's post "Daytrading Opening Gaps" to find this setup. The Fibonaaci extensions are a direct application of Trader X's methodolgy. I sometimes use resistance from the daily chart to determine my exit points, but when price reaches virgin territory as DVN did today, the Fibonacci extensions are ideal.
As per last night's watch list, I also traded AKAM today. My entry was $40.95 on the second 15 minute bar. I took a 50% profit at $41.60 on the fourth bar. I exited the balance at $41.40 after AKAM made a lower high.
N.B. the blue lines represent support and resistance. The Fibonacci extension is measured from from Friday's low to the high of the opening range bar.
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