ALNY Trade on Jun 3, 2014 13:40 from dwin_BOWS: Tradervue User Stock Trades.

Notice the daily chart and how many days it has been down. One i would have passed on to the short side.

I don't think it was a bad setup - there definitely was price resistance at 56.0 (look how long it took before it broke above it). I might have gotten in at the same place; only thing I might (definitely might) have done differently would have been to get out sooner when it didn't quickly break one way or the other.

I'm not sure how much the down trend on the long-term chart applies to the intraday - it gapped down, and was already down on the day (and ended down), so clearly it still had some down mojo. But there was a lot of buy volume on the way back up to 56, and the flag formed a flat top with an ascending lower edge, so clearly a bull flag.

None of this stuff is definitive, though - just the combo of factors that either give a strong case it's going to go your way or not. The hard part for me is staying out unless the case is really strong - I tend to see a couple signs pointing one way and go that way, instead of looking for 10 signs converging. Still, in a sideways market like today, any flag could break up or down - might as well toss a coin (in fact I probably would have picked the right side more often if I had...)

There is obvious selling pressure on the daily...which warrants consideration for a bearish setup intraday, as long as price is not right at a strong daily support(price level, sma, trendline,etc). There is no magic # of days down/up that should negate a good clean intraday setup with volume. Continuation is a good thing...and often profitable.