Markets gapped up and rallied to the 200 SMA and full retracement of last week's slide. As soon as that widely watched tag occurred, price started to retreat as market participants booked profits. Selling was slow and choppy until Moody's downgraded Greece debt, resulting in an inverted hammer/ bearish shooting star daily candlestick pattern. Overnight, S&P futures retraced 62% of the PDR (previous day's range), currently trading in the ambush zone.
INFY from the Trade-Ideas scanner, gapped and rallied above the daily pivot R2 (blue dotted line). Price consolidated the gap in an orderly fashion. Enter long with target of weekly R2 which matches nicely with full Fib extension.NTAP - Target 2nd half of full extension of Friday's pattern.
It was important to book full profits before the S&P tagged the 200 SMA because a sell-off was likely. I took half off my POT swing trade on the open. Still holding full NTAP swing trade in the hope that the market does not retest last week's lows.
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