RMBS, from the Briefing.com gapper list was already 62% extended (Fibonacci) from the previous day low to ORH by the time it carved out 2 NRIBs. But this being RMBS, 62% is not a big deal especially when $10 billion in royalties is involved. The second inside bar, was a bullish hammer so I entered long on a break of the outside bar. My preliminary concern was the January reaction high (thin blue line), but it succumbed rather easily. My next target was the daily pivot (thick blue line) which, as highlighted in the daily timeframe, was significant resistance in Oct. -Nov. 2007. It also happens to be a nice round $ number. As soon as price approached the target, I exited the trade.Notice the euphoric volume spikes on the last two green sticks before price retraces. Also notice how the daily pivot holds as resistance on two tests in the afternoon.
On the daily timeframe, when price finally broke through the PP in early December, it printed a WRB on higher volume. That's the magic of the daily PP BO.
BTW, I'm adding RMBS to the WL.
3 comments:
This was the first stock that I watched. But it was moving so quick and since it reached 62%, I thought it will stopped there.
Hey Jerry,
RMBS has so many outstanding lawsuits. In the past when they came into play, they triggered extreme WRBs. This morning's news was no different.
Jamie,
As I was clicking the Warrior button I thought Rambus is your Wed dummy. Sure enough. Nice with the daily. I might have to include it. The first 3 5" bars could have been an aggressive entry. 5/10/15/30 all look good as TraderX type. Btw, the Baltic Index info from Briefing helped the shippers gap and go.
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