Thursday, October 19, 2006

Dummy Trade of the Day - CONSOL Energy Inc. (Public, NYSE:CNX)

CNX came to me from a gapper scan. I liked the volume so as soon as it reversed off of support from its rising 10 period EMA, I took a long position. I made my exit when it became clear that CNX was carving out a lower high. From the daily timeframe it appeared that the June closing low ($35.59) was acting as resistance.

2 comments:

Gav said...

Hi jamie,
I read your trades. Can I say that your exit strategy is always looking for a lower high for Long position (higher low for Short of course)?

Great blog. Another good source to learn day trading.

Jamie said...

Hi Gav,

Thanks. The lower high is usually my first clue that the stock is going to come into some weakness. I'd rather exit while I still have most of my profit and get back in later if the stock looks well positioned to rally into the close.