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Monday, October 02, 2006

BRCD - 100206; 30-minute chart

posted by Tom C:

My BOBJ trade stirred up a lot of comments last week, so I thought I would post another "wild" one. BRCD made a small gap down, and quickly rallied from the opening low through the retracement zone and the Fibonacci extension of the previous day's high to the opening range low. Both the 1st and 2nd bars were very strong, with the second bar leaving a short lower tail (hammer-like, but not a hammer). Price was also supported by the rising MA. I entered on a break of the 2nd bar high.

I was waiting on a break of the 5-period MA to sell, but it is still going strong (low price, high volume - nice % gainer). I will post a chart later.

edit - here is the chart; total gain just under 7%




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4 comments:

Prospectus said...

I saw that one about 11:30. Great job getting in at the beginning!

Maybe I'm a bit slow, but it seems like most of the good plays are not the biggest gappers. A smaller gap seems to leave more room for the stock to move. Is that correct?

Trader-X said...

Nice one Tom C.

Trader-X said...

exeng - part of the "studies" I have been doing over the past month have to do with gap size. I was hoping to post something over the weekend, but was not able to do so. I will get something up this week.

I would not say that smaller gaps give more potential, but I would say smaller gaps have a lot more potential than I used to think...more later.

Jamie said...

Looks like a breakout play. Either way, it sure is sweet!