The first chart is a wide range view of CAL over the last few weeks. The blue lines are key support and resistance levels. Of course, when support is broken, it becomes resistance. So yesterday's support is today's resistance.The second chart is a closer view of the same 15 minute timeframe. CAL gapped down on the open and quickly fell towards the gap open support level dating back to November 15th. The next bar signaled indecision and the third bar moved slightly higher. Volume on the second and third bars was very bullish, so I took a low risk, long entry as the fourth bar opened up. My target was a gap fill. As soon as price tagged the downsloping 20 period EMA, I took my profit.
I shorted CAL on a lower high about an hour later. Midday it formed a perfect hammer, signaling a potential reversal. I immediately, tightened my stop to breakeven just in case and I was stopped out on the next bar. I waited to see if another long entry would setup, but decided to call it a day when the stock came into a third wave of weakness. The chop chop game is a no win situation when it comes to trading.
2 comments:
Can I just give you my money and can you trade for me? I feel like everyone found a trade today except for me!
Nice trade Jamie. I waiting to pounce on your afternoon momo play, it may be a while.
I understand and appreciate your trading strategy. Mastering one setup at a time is the way to go. That said, hope the momos come back to see another day soon.
Good trading!
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