The first chart is the daily timeframe for QCOM. It highlights significant pivot point support at $40.00.
The next chart is the 15 minute timeframe. On an intraday basis, $41.00 was a PP. When QCOM carved out a NRB at the upper PP with a bearish MA crossover just overhead, I took the dummy short. My stop was just pennies above the hanging man. My target was $40.00. I moved my stop textbook style, above the previous bar high and exited when the target was reached.
QCOM was on the Briefing.com gapper list and that's how I found the setup.
2 comments:
jamie,
was the 41 pp derived from the second and fifth bar and nothing else? what was the main driver for this trade? weren't you concern by the long lower tail on the first bar? thx
Andrew
The $41.00 PP was in play almost every day since the beginning of August. Look at a wide range view of the 15 minute timeframe. If I see a low risk entry at a PP, I like to take the trade. QCOM was weak due to some legal problems which usually weigh heavily on price.
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