RIMM was my opening range breakout trade. Why was I watching RIMM this morning? As you can see from the daily chart above, yesterday RIMM closed near its lows, just below a key support level $45.00. This could lead to a continuation play or a snap back reversal at support.As depicted on the 1 minute chart below, RIMM gapped up and quickly reversed. I placed my Fibs. from the ORH to the low of yesterday's closing bar. I wanted to short the continuation setup as price took out the closing lows. At first it was choppy, but as price approached the base, it carved out some NRIBs. Use last pivot high as stop (red line segment). It fell like a hot knife through butter and I exit on a hammer like bar between 100-150% extension.
RIMM support at $40.00 should bring in bargain hunters.
ABX extended yesterday's weakness in early trade and reversed. It appeared to be carving out an inverse H&S base. We can assume this as the right shoulder holds support near $37.00 (neckline) as it did on the left shoulder. I took an early entry as price formed a narrow base inside the right shoulder.I exited half as price broke the accelerated trendline on 1 min. and was forming a long upper shadow on 15 min. I added back when original trendline held as support.
I planned to exit the trade at the same price that I shorted yesterday. Why? Because I believe that price has a memory. Many will dispute this theory, but it works effectively for me and that's all that really counts.
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