Gap - MDVN, Gap Fade - ATHN, Ambush - SPY

MDVN, from the TI scanner, gapped up in late pre-market. The opening range leaves a long upper shadow, but clears daily resistance (blue line) on a closing basis. The next two bars are NRIBs in close proximity to rising 5 period EMA. This setup is very similar to the GIL trade earlier this week. Burn it to memory for future reference.

It's always a good idea to map out daily support/resistance of gapper candidates in pre-market and/or first 15-30 minutes of trading session. That's why I like the TI scanner - it tells me how many days of S/R are being taken out in pre-market price action.

ATHN, also from the TI scanner, had two support levels at $29 and $28. Buyers stepped in at $29. The opening range was solidly bullish and I waited for a break of ORH. It's important to watch carefully, for a close above the downsloping 5 period EMA just above the BO point.


SPY setup a perfect ambush trade. Took a partial as price approached the downsloping 50 SMA and exit balance on weakness following lower high. Price eventually retested sessions highs, but failed to close above, so I waited for confirmation and shorted the failure.