INSP - 111505

Variation of the bread and butter set-up.

1.) What did I see?
A gap down and rally to resistance at the retracement zone of the previous day's high to the opening range low. The second bar reversed at that resistance, but did not provide a good signal or entry. The third and fourth bars moved sideways, and the fifth bar rallied to try and take out resistance for the second time (possible double top if it fails, which it did). The sixth bar was narrow range, an inside bar, and a weak candle.
2.) What is the entry?
A break of the sixth bar low.
3.) What is the exit?
The Fibonacci extension of the previous day's high to the opening range low. I watched the level at the morning low closely to make sure price didn't reverse. INSP hit the target before the last hour of trading.