XOM Trade on Jul 31, 2020 09:33 from spyrosz: Tradervue User Stock Trades.

Disastrous earnings + 1st back to back Q/Q loss in 36yrs.
Oil sector in a bear market --> mindset = short the rallies to resistance, short the support breaks.

XOM gaping lower premarket after earnings report, trading around the all-important $41 support lvl. Below that, next support sitting at $40-40.2 (target).
Plan was as follows:
a) I was hoping for a pop towards R1=yesterday's close=$41.9-42 area to get short, expecting a Desc. Triangle Support Break pattern of S1=$41.
b) Small pop at the open to S1=$41, unable to reclaim the level, momo sell-off to S2=$40.2.

XOM opened in-front of S1=$41 and rallied to R1=yesterday's close per premarket plan.

Started scaling in to the short slowly, risking $42.3s, added on the backside once it rejected R1 and rolled over back to VWAP.

However, it wasn't behaving exactly as expected. It was trying to hold VWAP, w/o selling off to S1 (per the pattern I was playing). So I sat tight and watched it.
Tried to bounce from VWAP but got rejected on volume putting a lower high.

I interpreted it as confirmation that it was internally weak, so added a bit more, moving stop above the lower high.

Covered half in-front of S1. It bounced back to VWAP, putting a new lower high.
So I moved stop accordingly. Managed to break the desc. resist. trendline and squeeze higher getting me stopped out.

I am very proud of this trade both in terms of playing the idea and risk management.
Some good trading here.