FLML tested and breached the
intra-day pivot in early trade, followed by a retest and the formation of a shallow rounded base, setting up a low risk dummy long. This setup is very similar to the
VMW trade on Tuesday.
RIMM became a BO candidate after testing the pivot point (blue line) several times in early trade on both Wednesday and Thursday. The move from the PP back down to retest Wednesday's low was on tepid volume. The reversal at 2:00 carved out two bullish
WR green sticks on an uptick in volume. This move was decisive and was followed by an inside bar in the upper half of the second
WRB. I entered long on a break of the inside bar before the actual PP break. Locked in some gains just below $103.00 and waited for a possible retest of the PP, keeping a close eye on the lower
time frame to
monitor volume on the
retracement (lower volume on the pullback implies a retracement as opposed to a reversal). The PP held as support and price expanded nicely into the close.
FLML tested and breached the intra-day pivot in early trade, followed by a retest and the formation of a shallow rounded base, setting up a low risk dummy long. This setup is very similar to the VMW trade on Tuesday.
RIMM became a BO candidate after testing the pivot point (blue line) several times in early trade on both Wednesday and Thursday. The move from the PP back down to retest Wednesday's low was on tepid volume. The reversal at 2:00 carved out two bullish WR green sticks on an uptick in volume. This move was decisive and was followed by an inside bar in the upper half of the second WRB. I entered long on a break of the inside bar before the actual PP break. Locked in some gains just below $103.00 and waited for a possible retest of the PP, keeping a close eye on the lower time frame to monitor volume on the retracement (lower volume on the pullback implies a retracement as opposed to a reversal). The PP held as support and price expanded nicely into the close.
4 comments:
Hi Jamie,
After your initial stop for RIMM, how do you adjust it subsequently for this volatile stock?
YR
Hi YR,
After the partial, I move my stop to breakeven on the balance. In the case of RIMM, the inverted hammer on the retest looked bearish so you don't want the second half of the trade to reduce profits from the first half.
There are various methods to manage profits, but basically a close below the rising 5 period ema on the 15 minute would bearish especially if it happens on a WRB.
Is it weekly pivot points or intraday pivot points ?
Thanks !
Intraday PP. It came into play on the 10th as support and the 12th and 13th as resistance.
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