The first chart of INFY is the daily timeframe which shows that we have a lot of support at $50.00 from several recent price pivots.The chart below is the 15 min. timeframe which shows how INFY bounced from the $50.00 PP and set up a dummy gap fade after basing at the ORH and carving out a NR7 trigger bar. I took a partial at the 50% Fibonacci retracement of the move from yesterday's day high to today's low. My target for the balance was the 62% retracement level, but the market came into some weakness and I bailed as price came back to the 50% level.
4 comments:
Hey Jamie,
Awesome trade with great analysis! I hand INFY on my list today but failed to notice the support at 50. What time frames to you check when placing trades?
Thanks El Toro,
I check the daily, 15, 5 min. before executing a trade. Those are my main timeframes, but I also like the 3 and 1 min. for early entries.
Yes, awesome trading from PP/support! You probably noticed that INFY almost exactly filled the gap and turned at PPs from EOD yesterday and afternoon low PPs from last Friday (7/6). When a stock is trading within the price ranges of the past few days, I believe price responds better to existing PPs than to Fib extensions. What are your thoughts on that?
Hey Jim,
Yes, I did notice those observations and I agree, the PPs are definitely a significant factor in short-term price movements. I've also observed that when a PP is finally broken, it usually sets off a huge move.
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