Thursday, July 13, 2006

Trade of the Day - Citrix Systems Inc. NASDAQ (CTXS)

I got the idea for this trade after reading downtowntrader's blog. CTXS was sitting on support and after looking at the 60 minute view, I noticed a lot of positive divergence so I added it to my short list of potential trades for today.

The stock gapped down like many stocks this morning, and came within a few cents of its 200 day MA on the daily. From there it consolidated the gap loss for the better part of an hour. As soon as it took out the gap open high, I went long. I booked 50 % of my profit after a 1 pt. gain because the 50 MA was hovering just above. I exited the balance of the trade shortly after it carved out a star candle on the 15 minute view.

Update on Last Night's Watch List Stocks

TZOO did not trigger a long entry on the open because it gapped so low that it created a bearish island reversal on the daily view. Once yesterday morning's gap was filled, it pulled back sharply and could have been shorted when it slipped back under its 50 MA on the five minute view.

FFIV gapped lower on the open, but it held yesterday's low as support, so I took a chance. My entry was $47.95 and my exit was $48.89.

AMZN didn't do much and it invalidated itself as a potential trade for now.

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