Sunday, February 06, 2011

Friday's Trades - UA, CIEN, JDSU

As noted in Thursday's post, UA had a well formed bullish flag pattern on the daily. Price broke out 30 minutes into the session and never looked back.

If you missed the initial BO, a second opportunity presented itself as price consolidated at $63.00 and coiled prior to the next leg up. I took a partial at weekly R1 and let the rest run, until I got a sell signal. That was a good opp. to short as UA was extremely extended.

On the daily, we see that UA has room to run for a full measured move, so keep it on the focus list.

CIEN was a volume momentum gap which I found through the momentum scan. Price retraced back to weekly R2 which held as support. I waited for confirmation. Price consolidated at the base of the the 50% Fib. retracement and set up out a low risk entry (NR7) . I targeted a move back to the early swing high.

JDSU was an earnings gap mentioned in Thursday's post. Wait for price to consolidate on or near the rising 5 period ema on the 15 minute chart or 20 ema on 5 minute.


chin said...


UA had a another move up. You have mentioned a measured move up on UA. Would that be around the $69 area ?
Is measured move similar to what Stevenson's book talks about ? The PTT ?


TJ said...


If you click on the UA daily chart to enlarge it, you'll see that the full measured move 100% is $68.30.

I'm not familiar with Stevenson or PTT.

chin said...

I found this book on
Precision Trading - Price target and Time by Stevenson. Quite a good read.