NTAP a gapper from the Briefing.com list, set up nicely on a break of inside bar (actual entry looks better on the 5 minute time frame). I was hoping for 3 WRBs but after easily taking out the ORL, it paused to consolidate at the 25% Fib. extension of the previous day high to the ORL. I took a partial as price tagged the target. I had to give the second half a really wide stop after the bullish reversal from the morning swing low.
When it retests the lows it's going to bounce because everyone who held through lunch, like me is happy to get out with initial profits still intact. At the end of the day it didn't extend much beyond the initial swoon lower.
NVDA was an earnings gap. After consolidating the early run, it set up a dummy short on the break of the daily pivot.
8 comments:
Hey Jamie,
I just wanted to get your opinion on NTGR today. I went short on the break of the 11:30 inside bar (2 inside). Everything was looking good until that 12:15 whipsaw that flew up to 23.24. I ended up scratching the trade. Is there anything I could have done differently or is this just bound to happen occasionally?
Hi Jamie,
For NTAP, the 1st bar printed a hammer and the IB was in the upper half of the 1st bar. I also see both the 50 and 200SMA nearby below on the 15min. While the trade looked attractive on 5min, what made you drill down into 5min in the first place since it didn't look that good on 15min?
YR
Jonathan,
I think this was more bad luck than anything else. I see a large order (>18,000 shares) on the time & sales came in on that spike. However, I do find that gappers tend to consolidate and retrace during lunch. So the only thing I would recommend is that you try to find setups that break on or before 11:00 EST.
But technically speaking, the entry was perfect in terms of NRIBs (NR7), proximity to downsloping 5 ema, and under normal circumstances, could have delivered 3 WRBs.
YR,
A hammer is only a hammer if it results in reversal. This is a hanging man. The close of the body of the hanging man is at the base of intraday S/R level $22.50. This is the best time to enter - at or near a price break of S/R. I saw the 50 MA but did not have the 200 plotted.
Once again, great exits.
Jamie, how did you stay in after the bounce off of the partial sell on NTAP?
thanks, QQQBall
Thanks QQQBall,
I was totally distracted and when I realized NTAP was in for a deeper retrace than anticipated, I had to give it some room so I adjusted the stop for 50% Fib. retracement which lined up with the two topping wicks (red line segement).
i had the same trade..but i took my profit @22.10..as the stock seemed to get support at @22..
it did eventually went down but that was because of the overall market..]
IMO.
Anon,
Price found support at $21.92 and bounced a bit. This lines up nicely with the previous day ORL (gap support from the previous day).
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