SPCE Trade on May 6, 2020 13:31 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• 195m Chart: Uptrend, Consolidation below recent highs.
• TTM Squeeze: 195m
• Earnings Date: Earnings were yesterday.

Reason For Entry:

• Playing the 195m chart. SPCE is in a pattern of consolidation below its recent highs. There is a high short float percentage at 33%. SPCE released its earnings yesterday at the close and gapped higher today. Price then retraced to the buy zone (8 and 21ema area) and order filled for 2 contracts and risking less than 1% of portfolio. Watching for a move to new highs on the 195m chart.

Reason For Exit:

• Price made a huge move up towards the fib extension 50% area. I scaled out of the trade in 1/2 size. The second exit was at the fib 50% mark for a 100% gain.

Recap:

• The pattern was valid (consolidation below its recent highs). Entry was correct at the buy zone (8 and 21ema) as price filled a gap below. SPCE then made a huge move up and I scaled out of the position in 1/2 size lots. Ultimately, I wanted to swing this trade as the TTM is gaining momentum and looking ready to fire long, but I had to lock in the win as profits hit 100%. I will be looking for a retracement back in the buy zone to enter the trade again, that is if the TTM stays in a squeeze and the pattern is valid.