1.) What did I see?
A gap up and the first four bars were strong with a nice move up; the next three bars went into a sideways consolidation. I like formations like the sixth and seventh bars after a run-up - at first glance, you might think they are bearish as they leave a long upper-tail. But, in the context of the move you can also look at them as potentially bullish - there is an attempt to rally that does not take, but the low holds and a new low is not made. So, a break of the high with a strong candle (like the eighth bar) usually leads to a continuation of the earlier up move.
2.) What is the entry?
A break of the seventh bar high.
3.) What is the exit?
The target for NTAP was somewhat loose - if I could have gotten my standard $1 I would have closed the position, but the price action in NTAP was not that strong. I watched the Fibonacci extension of the previous day's low to the opening range high (top white line) for resistance - once it cleared that point, I had a mental stop in place if it broke back below that line. It didn't - it made a nice pullback and then resumed the uptrend, closing near the high of the day. I closed my position just before the market close.
No comments:
Post a Comment