Gapper Retracement Trade of the Day - Tesoro Corporation (Public, NYSE:TSO)

TSO was a gapper from the Briefing.com list. After a 38% Fibonacci retracement of the ORH to the morning swing low, TSO stalled. Short after price reverses and takes out 5 period ema. These types of setups usually move slowly until the swing low is taken out, at which point, it should accelerate as TSO did. I covered at the 50% Fib. extension of the previous day high to the ORL.

The gapper retracement setup should retrace approx. 38% which is a normal retracement on declining volume. After the swing low is taken out, look for volume to accelerate.