Seems like a while since I had such a momo extension from a gapper long. I highlighted DRYS in blue in the pre-market post as this is also a watch list stock for me. I waited what seemed like an eternity for the this cup & handle pattern to develop, but it was worth the wait.Typical Trader-X style, no hurry - dummy setup. I used a combination of PPs (blue lines) and the Fib. extension of the previous day low to the ORH as my guides. I took a partial at the daily pivot and closed the position as price approached resistance.
Notice how volume drys up in the handle portion of the pattern and ramps up on the BO. Price/vol. contraction before expansion. Sweet!
Lots of nice trades off the WL discussed in comments last night. I'll post a few later tonight.
2 comments:
Great trade. I gave it up DRYS and BCSI too early and I paid.
Jerry,
BCSI broke too soon for me as I was busy with the watch list. Just looking at it now and I notice it consolidated midday and had another move in the afternoon. DRYS was like a turtle, but cup and handle always takes a long time.
I will check your blog later tonight.
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