Price got held up at a key level for the longs, after a full dollar move in the pre market and a gap above the prior days high. This was also way above the thirty minute MA making it likely to revert. There was also no level where a short squeeze could happen. With just an upgrade from Barclays and no great price setup to drive price higher, it is likely for profits to be taken as well as two sided trading and methodical accumulation to occur.
The buyers were strong on the tape and wanted the break but they just kept getting stuffed and could not keep price above 14.71. When it failed to get through the level on the second try I got short after getting flat my long.
The thing I will do next time is hold the second half of my position for my next target and level and pay attention to the five minute opens and closes and not so much the wicks to spot where price may fail or signal a failed thesis.
This trade helped to teach me what a small reversion trade on a shorter time frame could look like and a way to trade it.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-09-25 09:37:10 | CCL | sell | $14.650 | short |
2020-09-25 09:37:57 | CCL | buy | $14.480 | short |
2020-09-25 09:41:13 | CCL | buy | $14.500 | 0 |
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