This wasn’t one of my favorites initially when I first looked at the charts this morning, here’s what I said about it then:
This has had a lot of wild moves over the last few weeks spiking over $3.50 and then returning over the course of less than 2 weeks. Today, price is back somewhat near those highs, and has recently taken out a slight resistance area that was created during those couple of weeks, so it looks promising. I like a couple others more, but I’ll revisit this if I don’t end up taking a shot anywhere else
However, when I started looking at lower time-frame charts, this was one that looked promising. Price had pushed up and took out a resistance level, but didn’t look extended, then started pulling back. When price puled back to within that resistance level it made a small up-move and it looked like a nice re-test pattern and it looked better than some of the other stock’s whose 4-hour charts I liked more. I ran the numbers, and had a really nice above 3 R:R.
Entry – $36.25
Target – $36.80
Stop – $36.10
R:R – 3.67
Entry – $36.25
Exit – $36.25
Price eventually pushed up enough to trigger me into the trade, and fairly quickly reached 1R where I was able to move my stop to break even. From there, price pulled back, getting near my exit, but not triggering it, then it pushed back up and took out 1R and reached the highs of the day. Price failed to break that level, though, and pulled back from there enough to stop me out of the trade.
