Tuesday, January 30, 2007

Dummy Trade of the Day - United States Steel Corporation (Public, NYSE:X)

X gapped up on the open and after a sharp pullback to yesterday's low, it rallied 3+ points in less than an hour. At 10:30 it started pulling back to retest the breakout point (former resistance becomes support as marked by the green line). After a lengthy consolidation, it carved out a shallow base from which to continue its momo move. My entry was on a break of the blue segment and I exited just under $81.00 on the second last bar as it felt like it just couldn't go higher.
N.B. - X is one of my momo watchlist stocks, but it also showed up on one of my gapper scans this morning as well as Briefing.com's preview of stocks gapping up which you can access every morning from Trader Mike.

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