Sunday, March 08, 2009

Gapper Retracement Trade - Emergent BioSolutions Inc. (Public, NYSE:EBS)

EBS is a perfect example of a gapper retracement trade. Price spikes higher on the open after trading lower in post market trade on Thursday. It then retraces back to the R-zone, where it carves out a mini C&H, before expanding and retesting the early reaction highs.

FSYS faked me out before setting up for the real extension. I have to pay closer attention to level II when trading unfamiliar stocks. This is a low priced stock with a wide spread. I didn't take that into account when sizing my trade. Anyway, not a big deal because I had plenty of winners.

I traded the same core WL stocks as Thursday - V, IDCC, and POT for some more downside extensions. POT gapped in to the R-zone of the PDH to the PDL, printed a cluster of bearish sticks and voilĂ . The target on the daily was $65.00 which matched up perfectly with the FE.


6 comments:

Jim said...

Hey Jamie,

Great stuff - Technical Picture and Friday trading!

Susan said...

Excellent trades Jamie.

Jim said...

Candidates from my daily range contraction scan:

BA, LMT (same sector)
PCLN, ISRG, ITRI, RIMM, FWLT

PCLN unaware of bear market.

bl said...

Jamie,
Well done on EBS. I like the Fib OPR to yesterday's close retracement, and 5/10/20 ema action with 5 and 15 min charts. Even 30min chart looks good:5/30"IB

bl said...

Also, 3/30" FSYS short bar looks good

Jamie said...

Thanks guys

Jim - GE looks like it has capitulated followed by 2 NRIBs.