Monday, October 09, 2006

Dummy Trade of the Day - U.S. Steel Corp. (Public, NASDAQ:X)

X gapped up on the open and after a short period of consolidation, it took out the opening range high. I went long as soon as price took out the OR high - (my avg price $61.65). Volume picked up nicely, propelling the stock up to my target of $64.00. My target of $64.00 was the midway point between resistance ($64.18 from the daily) and the 100% Fibonacci extension from Friday's low. As you can see from the chart, X actually tagged the 1.6 Fibonacci extension at $65.19 (Wow!, how often does that happen?) before coming back in. So my target, which I thought was very optimistic given last week's run, was not quite right.

Chart: 5 minute timeframe

4 comments:

Jose V said...

Hi Jamie,
Great work on X and AKAM. Great blog also, it's in my routine mourning web surf before the market opens.
Thanks for sharing your thoughts.
Keep the great work!!

Jamie said...

Hi Jose,

Welcome to the blog and thanks for the kind words.

Simply Options Trader said...

Great trade Jamie!

I started putting X on my radar after seeing 2 trading posts by u last wk. But I still missed the boat today! Got distracted. Hope there's more of such setups to come.

Cheers

Jamie said...

Hey simply options trader,

Thanks for the mention on your blog last week. I wasn't expecting such a big move on X after last week's run up, but I'll take it.