SNDK gapped down well below its bullish gap support dating back to 25-07-2006. The first bar was WR with a long upper shadow. The second bar was a doji which held the low of the first bar. The third bar was almost an NR7, inside bar on lower volume. The fourth bar easily took out the third bar high on an uptick in volume and it was time to fade the gap. The prelim. target was the failed gap open support mentioned above. The target was easily reached with only a short consolidation period as price traded in the area of the opening range high. I exited 50% when the target was reached. I exited the balance when price pivoted from the target and started coming in fast.
Click on charts to enlargeN.B. - I spotted SNDK last night in AH on disappointing earnings and added to my watchlist. SNDK was very active in the pre-market and it was highlighted on Briefing.com's gapping down list this morning.
4 comments:
Great trade was watching SNDK this morning to but didn't take a play on it.
Thanks Bubs,
I drew in the support lines in pre-market so that I would be ready to trade it in either direction.
Jamie,
Like bubs, I was also watching SNDK and had drew in the support @ $39 premarket. But I missed out the gap open support.
On FOMC day, if you had entered a position in the first half of trading day, believe you would exit at 2pm EST, win lose or draw?
Hey Simply Options Trader,
Absolutely, I would never hold a position into the Fed policy anouncement.
Post a Comment