WFC Trade on Nov 24, 2020 10:08 from spyrosz: Tradervue User Stock Trades.

The trade on the XLE, XLI names has definitely changed. Not so simple as shorting the pops to resistance. Must be careful from now on.

Up big premarket (+6% or so), pressing against R1=200SMA@daily=$27.4. R2=YTD AVWAP=$28.45 was definitely a level I was watching to hit it hard.

Opened super-strong, broke above R1 and rallied to R2.

Got short Tier 0 at the extention towards R2, risking above R2=$28.5. Slowly added more size after each failed attempt to break $28.3 and push towards HOD, tightening stop to HOD=$28.35, expecting sellers to step in and push it back to VWAP at a minimum. Ultimate target was R1=$27.4.

I saw the higher lows, 15min chart was looking extremely bullish, so the moment it started crawling back towards $28.3 instead of breaking lower, I bailed.

One quick scalp once it broke above R2 was all I did afterwards for a small winner.

(+) Excellent tape reading, realized that squeeze was coming and got out, avoiding the loss

NOTE:
1. When a name is super-strong in the morning, and remains strong throughout the whole session, then you have to wait for a "Technical Reversal" pattern in a timeframe > 15min chart, ideally the 60min chart, before trying to get short. The candle before reversing would be a "gravestone" doji in most cases. That's an observation that I have made and holds true in most cases when a name remained strong intra-day but I wanted to get "short".

Example - WFC
1. There is no "Technical Reversal on the 15min" chart.
2. The "Technical Reversal" appears on the 30min chart with the gravestone doji.