The first chart is the daily chart of ALXN which gapped up last week and has remained strong despite weak market conditions. Today it broke out of its gap consolidation base.The second chart is a 5 minute chart of my entry and exits. I took an early entry, keying off of a mini ascending triangle. Price rallied on high volume out of the base and stalled at the cusp of the round $ dollar number. I took a partial and waited for the stock to retrace (38% normal retracement) not realizing it was so late in the session. As the stock was making its way to the 38% Fib. retracement level, I woke up to the fact that there was less than 30 minutes left in the session. It worked out in the end, but I'll have to be more mind full of the clock from now on.
N.B. ARTC another gapper from last week, is also setting up a nice B&B.
4 comments:
Hey Jamie,
It is not very clear which bar your entry is. Were you waiting for it to clear $60 or $60.06? (the 2.20pm ET 5min bar that left an upper tail). Thanks
Zen
Not only do you and others I read always manager to find at least a stock to trade and came out a winner, too.
It must be more than just a gap list and study charts before and after the market.
:-)
Zen,
I placed a buy stop order at $60.06, two pennies above the base of the two preceding bars. Filled at $60.10 if memory is good. Volume was already coming into the stock so I didn't wait to cover the shadows of the 2:20 bar.
Jerry,
Many of my gap trades come from the Briefing.com gappers list posted on this blog.
Usually at least 2 or 3 really good setups just from Briefing.com and sometimes more during earnings season.
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