Shared by
jmos_BOWS
Play: Bounce
Stock held yesterday's low with strength so when volume came in, i got in for some follow through after the pb and once again, no follow through on it and broke support so got out.
Reasons to sell:broke support
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-05-10 10:17:34 | X | buy | $16.300 | long |
| 2016-05-10 10:21:59 | X | sell | $16.150 | 0 |
Comments
jmos_BOWS
In hindsight, I am asking myself the same question lol But the thought process was, 16.2 was solid support from yesterday and had tested it couple times and it held, USO and XLE (which I use to gauge the strength of the oil/energy sector) was really strong so since this and FCX were weak compare to their strength the previous month, and they were on support, I had a bias for them to bounce so when XLE and USO started going out of their flag i believe (or VWAP bounce, cant' remember exactly), volume came in both stocks so I got in. Didn't want to chase it so waited for a small pb, maybe one last shake out before it goes so i was aggressive but it was a no go.
This was more of a big picture trade, i am not good at bounce plays but I have to learn them since not everything goes para (which is my niche).
Hope this helps!
josephhackett_BULLS
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Jmos,
Curious why you didn't wait for X to test support at that $16.20 area instead of buying on a Gravestone Doji...which is generally bearish and the stock was in a downtrend from open.....just trying to learn thanks for posing your trade