Friday, October 06, 2006

Trade of the Day - United States Steel Corporation (Public, NYSE:X)

After pulling back into pivot point support and consolidating, X was ripe for a reversal and a test of yesterday's high. I waited for a NRB and entered long on the next continuation bar. My target was yesterday's high. The target was reached about 45 minutes later.

After studying many gapper charts, I noticed that often times we can get a good trade on the day following the gap up. I look for the stock to pull back to support on the open and then reverse for a retest of the previous day's highs.

Chart: 10 minute timeframe

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