Saturday, February 03, 2007

Dummy Trade of the Day - Zoran Corporation (Public, NASDAQ:ZRAN)

ZRAN gapped up on the open and carved a fairly WR red stick. The second bar was spinner, but held above the first bar low. The next three bar were bullish and together, the first five bars carved out a shallow base (U set-up - Trader-X one of Tom C's favs) at the $15.00 base level of the OR. The shallow base is a powerful trading pattern so I took a low risk, long, dummy entry. My initial price target was in the area of $15.67 which lined up nicely with the 50% Fibonacci extension. I took a 50 % profit at $15.70 and was hoping for a retracement back to the rising 10 period MA and another rally to my second target in the afternoon, but the latter didn't happen and I exited the balance at the 38% extension.

I noticed that Victoria traded ZRAN as well . Check it out for a perspective on trading the 10 minute timeframe.

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