Tuesday, April 20, 2010

Swing Trader

STEC basing at $14.20. Last week's thrust into resistance followed by 2 inside bars, looks good. Next resistance level $16.00, followed by $18.00.

Picked up some POT on test of daily 200 SMA. The sector has corrected and I'm looking for a bounce back up to the FIB retracement zone of last leg down.

9 comments:

Day Tradr said...

Jamie,

Very nice entry in POT. Nice bullish hammer on support at the EOD.

OIH was a B&BO setup above $129.xx as you mentioned in your chart a few days before. Today it opened at $126.83 but broke above the buy point. Would you have taken a swing trade position in OIH today? If yes, where, if not - why?

Thanks for the swing trade posts. They are very helpful.

Jamie said...

Day Tradr,

I didn't trade OIH today, but after a pullback, it's easier to target trade to the BO point and sell half at the target. After that if it consolidates the move in the upper range, you can add back to the position.

For example, OIH opened wide and took out $128 and R2 daily pivot. Then it consolidated sideways on 5 minute. A good entry point was around $128.50. Take half off when price fails to hold $131.00. We'll see if it can follow through tomorrow.

Day Tradr said...

Thanks Jamie. I entered OIH based on 15 min. on the 6th bar. Took a partial and holding the remaining. Hoping for some bullish action in OIH tomorrow.

Jamie, when you enter a swing trade based on intra-day entry, do you keep the original intraday SL for the next few days or you give it some room to consolidate?

Thanks

Jamie said...

Day Tradr,

I enter swing trades based on the daily timeframe. When I target trade to a daily base intraday, I take some off if it stalls in the area of the daily base line. Depending on how far price came from to reach the base, it may need time to consolidate prior to the next leg up.

What is the correct support level to place a stop during consolidation at the base? Ideally,you want to look at daily S/R levels and weekly pivot levels on a swing trade plus some wiggle room. For OIH it looks like $128.70 (weekly R1 matches closely to previous two daily swing highs prior to break) plus 20 cents wiggle room = $128.50.

Jamie said...

You can also use 6 day EMA which is currently tracking at $128.31.

Day Tradr said...

Thanks Jamie. I'm out remaining half of OIH. Took some STEC yesterday. Sold today at $15.80. Thanks a lot for potential swing candidates. Greatly appreciate it. Please keep posting swing trade stocks from time to time. Are you still holding POT?

Jamie said...

Day Tradr,

I'm still holding POT. As noted on the daily chart, the 200 SMA was a good spot to start scaling in. I will add to the position if it forms a proper base to go long.

Day Tradr said...

Jamie,

What are your views on gold stocks - GG, AEM. Are they forming a B&BO setup?

Thanks

Jamie said...

Day Tradr,

Yes. Gold, energy and commodities in general did well on Friday because the $USD was a fade. Keep an eye on the dollar if you're planning on swinging gold.