I was bullish AAPL going into the session because while the markets were pulling back, AAPL was holding its gains and consolidating sideways (see daily chart above).
After gapping up above yesterday's range, AAPL retraced and chopped around before carving out a bullish morning star reversal pattern. I took a partial when it couldn't hold $148.00 allowing for a 38% Fib retracement which would bring price back in the area of R2. After retracing, it carved out a bullish green hammer and thrust back up, but couldn't break the morning swing high. I stuck with it because today was the first day of the month/QTR and lots of fresh institutional money was being put to work. I was not expecting another retrace, but now I was stuck. My only hope now was that the rising 20 ema would provide support.AAPL retraced the full 38% this time and reversed with a tweezer bottom and wide bullish engulfing bar. That morning swing high was formidable resistance, but the bulls prevailed.
SNDK was picture perfect - 3 IBs on declining volume, the last of which was NR. How momo is that? Too bad, even price and volume contraction can't turn a loser stock in a weak sector into a super hero. SNDK just couldn't break the daily pivot at $25.00, so I eventually dumped it out of frustration.
HANS had a choppy base but I couldn't help myself. It carved out a low risk green bar which closed at the base of resistance, so I jumped in. It did not extend fully. When I realized it had printed a perfect gravestone doji, I said goodbye.
Only one short today. The shooting star is outside, followed by an inside bar. I used the high of the IB as my stop and the low of the OB as my entry. Exit on volume spike at base of support.
8 comments:
Nice job Jamie!
I also took SNDK at the same spot with "high hopes," but ended up dumping it as well. Oh well ... one of those days.
Cheers,
Thanks Jim, glad to hear you had a great day too!
Hey Anarco,
I'm keeping SNDK on the WL for a few days to see if anything develops. If it can break $25.00, it can easily go to $27.00.
Hey Jaime,
What do you think of this APOL for a possible gap fill?
Alex,
I'm setting an alert at $44.90. Certainly can't hurt to try. Just noticed that there's a small portion of the gap that was never filled from the gap up last June. That means that the the entire top is a bearish island until it gets filled.
What a nice strong trend day!
On your AAPL trade, was your initial stop the low of prior 15min bar? 148.2 was quite a resistance level. Were you tempted to close the trade after it printed a shooting star at that level around 2.45pmET 15min bar?
YR
Hey YR,
Great trend day. We only get a few of those per month, so we try to make the best.
I used the 5 min. to set the stop (11:05 bar about 50 cents).
A shooting star with no overlapping body is scary, but the 2:45 bar did not tempt me to close.
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