Thursday, December 21, 2006

Dummy Trade of the Day - MasterCard Incorporated (Public, NYSE:MA)


MA gapped down in pre-market and I spent the better part of an hour waiting for the bearish flag to break. When it finally broke, I was away from my desk and I missed out on a nice short. I kept coming back to the chart over the course of the session and I was rewarded with a nice long setup in the afternoon on the second successful test of support at $94.00. Long on a break of the previous bar high. I booked my profit as soon as price tagged the 200 period SMA.

2 comments:

Anonymous said...

Jamie, where do you find information about these support levels for a stock. Or do you use your own method of identifying these?

thanks
MJ

Jamie said...

Hi MJ,

I had a difficult time rapping my head around support and resistance when I first started trading. I'm basically applying standard techniques for identifying these levels. Try reading the article on Support and Resistance Reversals in my del.icio.us section on the side panel of my blog.