TGT was on Briefing's gapper list this morning (same store sales at low end of guidance). At the outset it did not look promising, however, patience paid off as it set up a nice dummy, base & break pattern just above the ORL. I took a full profit at the 38% Fibonacci extension of the previous day high to the ORL as I had to leave early and my cutoff was 3:00 p.m. EST. You could also have waited for the ORL to be taken out as this also set up a dummy entry.
The chart above is the 15 min. timeframe of HANS. The point I want to make here is that a down trending stock will rally up to the 50 MA but won't be able to hold it. HANS did this yesterday and today, setting up nice, clean shorting opps on both days.
The chart below is the 5 minute timeframe which shows my entry on a mini base & break setup. I took a partial when price fell into yesterday's late day support zone. My target on the balance was $42.50 but I closed the position because I had to leave. Just after my exit, price fell within 5 cents of the target.
5 comments:
Your Highness,
WOW!
What made you pick HANS? Scanner? Watchlist?
Am just amazed at how keen is your analysis. Please share more. I only wish I become half the trader you are.
Thanks Sasha,
HANS is a watchlist stock. On days like these (directionless market) I'm only risking half my usual and I prefer base & break patterns.
what exactly is a base and break pattern? is it just a period of consolidation in which you can draw a horizontal trend line. do you look at these as support and resistance from daily charts?
thank you
bid
Bid,
In this instance I'm looking at NR price consolidation at or near the 5 period ema. Price and volume contract just before the break.
B&B can take on different characteristics. For example a stock may tag a certain resistance level a few times and pullback creating a series of higher lows, such as in an ascending triangle pattern.
For HANS, I mapped out the S/R lines on the 15 min. timeframe intraday over several days.
Jamie,
You da man. Nice and clear, and watchliss do help. Keeping a running watchlist of recent gappers like hoku dndn nvda etc, attract eyebals and volitility.
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