NT was a quick setup and a fast trade. The stock gapped down below yesterday's low and carved out a WOR with a long lower shadow. The second stick was a perfect bearish, gravestone doji that did not breach the ORH. I took a dummy short on the break of the second bar low (inside bar). Price started to slow down as we approached the $20.00 round number so I took a partial and I was stopped out on the balance shortly after. The low of the day did not reach the 38% extension of the previous day high to the ORL (off by about 10 cents). Still the trade generated 3R.Thursday, August 02, 2007
Dummy Gapper (Short) Trade of the Day - Nortel Networks Corporation (USA) (Public, NYSE:NT)
NT was a quick setup and a fast trade. The stock gapped down below yesterday's low and carved out a WOR with a long lower shadow. The second stick was a perfect bearish, gravestone doji that did not breach the ORH. I took a dummy short on the break of the second bar low (inside bar). Price started to slow down as we approached the $20.00 round number so I took a partial and I was stopped out on the balance shortly after. The low of the day did not reach the 38% extension of the previous day high to the ORL (off by about 10 cents). Still the trade generated 3R.
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2 comments:
Jemie,
What do you think about HOKU now? it will reverse to uptrend? I read your blog every day and think you are good. I have HOKU position, please give me a gauidance, if I hold or sell?
David in carlifornia
David,
HOKU usually moves on news. The lack of news this week has kept it side lined. We have support at $8.00 from June's first swing high. Next support is $7.00 from January Pivot Point.
You can place a stop loss 10 cents below either of these two levels in order to protect yourself from further losses.
Yesterday was NR7 - price and volume contraction usually precedes price expansion. Unfortunately it is not possible to determine from the chart, if it will expand up or down so the stop loss is very important.
Good Luck.
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