FST gapped up and consolidated for two hours in the middle of the OR before setting up a break of the ORH. The entry had good support from the 5 period EMA. After the break, it retested the ORH as support and moved up from there. I exited on a volume spike as I felt that the end of the move was imminent. It continued to rally above the 100% Fibonacci extension and finally printed a red bar with a long upper shadow, so I shorted a break of the previous bar low and covered as price approached the rising 5 period ema. The distance between price and the ema was just too wide, so I felt to two would meet before the end of the session. THX was another gapper on my scan that made a similar move as FST.Wednesday, May 16, 2007
Dummy Trade of the Day - Forest Oil Corporation (Public, NYSE:FST)
FST gapped up and consolidated for two hours in the middle of the OR before setting up a break of the ORH. The entry had good support from the 5 period EMA. After the break, it retested the ORH as support and moved up from there. I exited on a volume spike as I felt that the end of the move was imminent. It continued to rally above the 100% Fibonacci extension and finally printed a red bar with a long upper shadow, so I shorted a break of the previous bar low and covered as price approached the rising 5 period ema. The distance between price and the ema was just too wide, so I felt to two would meet before the end of the session. THX was another gapper on my scan that made a similar move as FST.
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8 comments:
Jamie:
I've emailed you a few times recently; thanks for sharing info.
Nice trade. Actually I tried 3 or 4 today and this was also my best trade, by far. I managed to get in just a little earlier after it broke the consolidation around the 8th or 9th bar. But, I also chickened out and took my gains when it hit and stumbled briefly around the 1.61 fib extension. Still a nice .80 per share gain for me though.
Mike
Hi Jamie,
What kind of scan did you use to find FST? This didn't turn up on anything that I use.
Thanks a lot.
TonyB
@ Mike - Congrats on the trade. I wish I could find one like this every day.
@ TonyB - I use stockcharts.com real time extra to scan for gappers but I often have to run the scans a few times before I find something good. I scan for stocks that gap above yesterday's close > $5.00 with avg. volume > 200,000 over the last 10 days.
Nice trade. FST is the kind of chart setup I prefer over the one I snagged today in UA.
I went long UA reversal 15M/7B high. Volume reversed heavily and the 7B made a nice offsetting reversal to the longside so I jumped in. Exited @ 15M 34EMA as 12th candle printed an inverted hammer.
A lot was moving today but found few decent setups to execute. Maybe tomorrow will bring more to the table.
JR,
Agree - good setups were hard to find.
Edit - In the FST trade I had the 10 period ema instead of the 5. What a gaff. Luckily it worked for me. I would never have taken that short if I had used the right EMA.
Beautiful trade Jamie. That exact trade is how make our living. Too bad FST wasn't on our list (bias against oils...but we've added her now).
Great job.
HPCG,
Thanks guys, the combination of dummy gapper setups and HCPG's Base & Break setups makes for good trading!
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