Monday, August 16, 2010

Day Trades - Amazon.com, Inc. (Public, NASDAQ:AMZN); Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

AMZN successfully tested gap support on the ORL. On the 5 min. timeframe enter long at $124. Scale out as depicted on chart above.

RIMM gapped down and tested support at $52.20 (middle blue line on the daily) on OR. Short on break of ORL. Took a partial and holding half into tomorrow.

I will add to the position if RIMM retraces back towards downsloping 50 MA and reverses.

2 comments:

catherine said...

hey guys,

I just wanted to say that I love your updates and charts. Great analysis every day, and I'm learning a lot from your setups!

Quick question, if you have a minute: how do you decide where to draw your fib levels? For example on the RIMM chart above, I can't figure out what made you pick the high of the opening candle on Aug 13, to the low of the opening candle on Aug 16... is this a common area to place your Fib 0 and 100%? Just curious... any insight would be greatly appreciated!

Thanks for your help!
cheers!

Jamie said...

Hi Catherine,

Thanks for the kind words.

I've just published a post on basic Fibonacci Placement. This has been a topic of interest amongst readers lately so I hope the examples I've outlined answer everyone's questions.