Wednesday, December 06, 2006

Dummy Trade of the Day - Marvell Technology Group Ltd. (Public, NASDAQ:MRVL)

MRVL showed up on my gapper scan. A quick look at the daily timeframe showed that yesterday's bar was an NR7 so I went long on a break of resistance on the fourth bar and an uptick in volume. MRVL then stalled as it retested former resistance but managed to hold as support. It progressed in an orderly fashion for the better part of the day. In mid afternoon it attempted to take out the midday resistance but failed and that's when I took my exit.

GES was a low risk dummy entry looking for an extension of yesterday's big move. As you can see from the chart, it gave a good try but in the end it failed and I was stopped out for a tiny profit.

BSX was another gapper from my scan. I was looking for the elusive midday momo move, but it rallied up to the morning high and came right back in. I was anticipating this and I set a tight stop. Good for 17 cents.

AKAM was a low risk short entry. My target was the morning support area and I was happy to cover as soon as I saw that support was going to hold.

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