Monday, March 19, 2007

Dummy Trade of the Day - ACADIA Pharmaceuticals Inc. (Public, NASDAQ:ACAD)

ACAD gapped wide this morning and quickly setup a WOR Base and Break pattern. The size of the gap and the volume led me to believe it would break fast so I starting scaling in dummy style on the 5 minute timeframe. I doubled my size on the actual break. Normally I expect a 38% Fibonacci extension of the OR high on this type of pattern, but ACAD starting forming a tweezer top at 25%, so I exited my position.

OONR7 pointed out that PCLM, URRE and BWLD also setup as WOR base and break patterns today.

THE also had a wide opening gap and spent a good portion of the session setting up a flat base breakout pattern. Although the base broke well below the OR high, it was able to break above the OR on a WRB, However, the next bar was NR7 and marked the end of the move, before it fell sharply in the last 45 minutes of the session.


Both ACAD and THE were listed on Briefing.com's pre-market gapper list. I found them through Trade_Ideas .

4 comments:

WALL STREET said...

Hi, I traded the same stock today, but at 11:00 pullback.
Isn't the break of the OR bar(15 min chart) at the second (red) bar?
Thanks

Jamie said...

Hi WS,

Yes, there was a failed break on the second 15 min. bar and a successful break on the third bar. You traded it on a retest of the OR high support area. Nice trade, congrats!

bl said...

Good comments on ACAD. I think this was a big premkt vol stock. I'm going to put 12 premkt/at the open gappers with volume on a watchlist and 5 min charts and see what happens. Alot of opening 5 min bar continuations, and break downs.

Jamie said...

Thanks BL,

Some days its hard to find more than a few momos in pre-market. Today was nice, especially for a Monday.