When VLO tried to challenge its morning high, it failed and carved out a doji reversal bar with a long upper shadow. I shorted VLO as price fell below the low of the doji stick. I placed my stop 5 cents above the star prior to the doji because the doji was too wide. I took a partial when my preliminary pivot point target was met. The next target is gap support and I suspect it will reach that target tomorrow. It should bounce either at gap open or gap close. At the moment gap close lines up with the 200 MA.Tuesday, May 22, 2007
Trade of the Day - Valero Energy Corporation (Public, NYSE:VLO)
When VLO tried to challenge its morning high, it failed and carved out a doji reversal bar with a long upper shadow. I shorted VLO as price fell below the low of the doji stick. I placed my stop 5 cents above the star prior to the doji because the doji was too wide. I took a partial when my preliminary pivot point target was met. The next target is gap support and I suspect it will reach that target tomorrow. It should bounce either at gap open or gap close. At the moment gap close lines up with the 200 MA.
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6 comments:
Jamie,
Where did you get your exit targets for VLO. Is a important level on the daily chart?
Hey Bubs,
Are you trading VLO these days?
I used the swing high from yesterday morning as my pivot point. It served as support midday yesterday and was about 10 cents away from today's ORL.
My second target is yesterday's gap open which should act as support on the first test.
Jamie,
Did you originally get long the VLO as it broke the $77 level and then reversed positions or were you looking to get short from the begining?
Thanks
No I traded VLO yesterday but was just curious about your exits. You always seem to know the right time to exit. Keep up the great work here really appreciate it
Alex,
No, not after the move VLO made yesterday. I know what you mean - long on a break of the morning swing high. I was looking at DSL with that in mind, but I missed the entry. What a heartbreak.
Not a very productive day for me as I got a late start and missed a few nice setups.
VLO trades in sync with oil and the sector was weak today. As I don't have many oil stocks in my usual suspects list, I usually look for a setup in VLO when energy is in play. The doji reversal stick just above the morning swing high signaled a failed breakout and I jumped on it.
Bubs,
I notice you trade with HCPG. They have a great methodology and I'm sure you have a lot of setups lined up for tomorrow. Not sure if AL is on your list of developing patterns. Anyway, its gapping up AH on news that the shareholders have rejected the ALCOA offer amongst other things, and will likely open above the base. Could be a nice gap trade there. It will be tops on my list for tomorrow's open.
Good trading!
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