This is the second trade on TWLO.
Trade
Trade the stock consolidated in the ascending triangle pattern below 187.80 in the time interval from the market open till 11:00 am. At 11:02 the resistance level was decidedly breached. The price bar which went above the resistance level was a very big $2 bar accompanied by a big volume. Retail traders cannot create such a price movement. It was the footprint of an institution (maybe several institutions) buying. Long trade: enter at the top of the big bar around 189, stop-loss at 30% retracement from the top of the big bar, 188, target - 191.25
Trade implementation.
I entered as I planned at 188.90. Stop-loss never triggered. However when the stock moved favorably about $1 it slowed a bit. I got nervous about losing my P&L and exited. LAter I made one quick scalp in the direction of the momentum.
Lessons learned.
The stock consolidated for 1.5 hours and the clearly showed the footprints of institutional buying. It went up $6 with 7 uninterrupted green bars and shot $1.5 above the target price. I captured about 25% of this move. With such a setup, need to wait for the target price before contemplating exit.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-05-14 11:06:31 | TWLO | buy | $188.895 | long |
2020-05-14 11:11:46 | TWLO | sell | $189.750 | 0 |
2020-05-14 11:15:26 | TWLO | buy | $190.960 | long |
2020-05-14 11:15:47 | TWLO | sell | $191.320 | 0 |
You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes
just a few seconds to sign up, and it's free!