Dummy Gapper Trade of the Day - Nash-Finch Company (Public, NASDAQ:NAFC)

I ran a momentum scan midday and found NAFC. The scan looks for NASDAQ stocks trading at 20% higher volume and 10% higher price than the previous day. Since I run this scan late in the morning, I'm looking for a normal retracement from the morning swing high to set up a second leg. I define a normal retracement as 38% from the ORL to the morning swing high. The other criteria to look for is lower volume on the retracement (higher volume is indicative of a reversal) and that price does not breach the rising 20 period ema on the retracement.

NAFC had an orderly retracement and stopped at the 38% Fib level, however, it didn't carve out an obvious candlestick reversal pattern, so I waited until price took out the previous red bar before entering long. I took a partial as price retested the morning swing high and held the balance for an additional 38% Fib. extension.


CAL was a play on lower oil. After gapping open it retraced and swung back above the ORH on a WR bullish bar then printed 2 inside bars in the upper range of the WRB, setting up a low risk long.