CNQ was a retracement trade following a gap down. Despite the bullish OR candlestick, volume was declining and much weaker than the previous day's sell-off. I was looking for a normal retracement around 38% and continued weakness thereafter.Price retraced a bit more than 38% and printed a long upper shadow. The next bar was weak and inside. I confirmed the bearish reversal pattern on the 5 minute and shorted as depicted below. I took half off near the round $ number and held the rest for a full retracement to the ORL and R2.
A similar entry was taken on the Qs, this time using the intraday pivot points as my guide. Price rallied to P and carved out a bearish topping pattern. After confirmation, I shorted.
2 comments:
Jamie, Nice job and looks like fade the gap, reversal, consolidation, rally near the 2:30 magic hour for many stocks. Monday should be interesting!
Thanks BL,
Looking forward to a bounce after all this selling. Futures/Asian markets trading higher.
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