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Wednesday, December 21, 2005

UPS - 122105; 15-minute chart




1.) What did I see?
A gap up and wide range first bar, with the second and third bars making an orderly pullback. UPS rallies over the next several bars, and closes above the opening range high (set by the first bar); the sixth bar is narrow range and forms a nice "hammer-like" candle.
2.) What is the entry?
A break of the sixth bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the opening range high. It was hit shortly after Noon.

Notes - FDX was also a good set-up with an entrance on a break of the fourth bar high. But, the entry was BELOW the opening range high, so (as we discussed before) you had to watch price when it reached that level again to make sure it would not stall. If it did, you would want to exit quickly. But, FDX broke through the opening range high and continued to the Fibonacci extension.


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