Shared by
jmos_BOWS
Play: ORB
Stock was gapping up, opened strong but had heavy resistance, when it couldn't break out, got short. Failed to add to winner, thought it would bounce to allow me to add. Scaled out in flush, premarket support, extended.
Reasons to cover: flush, premarket support, extended, round #
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-05-02 09:30:26 | PTX | sell | $1.353 | short |
| 2016-05-02 09:31:21 | PTX | buy | $1.230 | short |
| 2016-05-02 09:33:29 | PTX | buy | $1.140 | short |
| 2016-05-02 09:42:19 | PTX | buy | $1.099 | short |
| 2016-05-02 10:02:01 | PTX | buy | $1.020 | 0 |
Comments
jmos_BOWS
Thanks Alex! If you made money according to your plan, strategy, etc..then you also had a couple good trades on it!
As for the resistance, I looked at the daily and pre-market. You can notice that the 50 sma was 1.37 and premarket highs were 1.5 and some resistance at 1.37 meaning sellers are stepping up at this level. So you have daily resistance (50 sma) and price resistance (sellers/profit taking).
I wasn't sure either at the open but when I saw big volume right off the bat and it couldn't break 1.37, I took the short with a tight stop. That is one of my go-to set ups as ppl see the volume going long, everyone chases and it can't break out, then panic comes in.
I also like the R:R on it. If it were to hold the 1.3 or LOD and start ramping, i would have covered flat or small loss above HOD, looking to re-add around 1.5 depending on price action obviously. Sometimes, it is hard to gauge the strength so it is better to just be patient and wait for a strong signal (whether long or short).
alexfeliciano
Thanks for sharing this long explanation. Its great to see this point of view, as of the volume, (normally the volume goes wild in the mornings... ) and that definitely the stock wasn't able to spike above its premarket high.... thats a weak sign. I will try being less biased before entering a trade. But its hard, seeing all this action in 5 minutes... and not being biased, and act on what you see. Thanks again.
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Hi Jmos, how did you detect the resistance ... it was a very volatile stock to trade of. In the premarket i traded long from 1.28 to 1,35 or so.... and didn't hold. It moved very quick, and got scared out. So took of. I thought afterwards that it would hold 9ema and bought, 1,15 or so. Gladly it gave me a spike to 1,20 to get out. Just fell out of bed to 1.00, you were in the right side of the market...it was a billionaire play invested thats why i was a bit biased. Grear trade of yours with a lot of patience.