ALGN Trade on Apr 19, 2018 10:17 from Felix: Tradervue User Stock Trades.

1st Day Trend Trade on Downgrade Tier1 firm

The Big Picture

Market was trending down from. Outlined the major support and resistance areas for the market and it was trending between and towards this levels, which got me into shorting stocks today.

Intraday Fundamentals

Align Technology Inc. (NASDAQ: ALGN) is down over 8.5% as of 11:25 A.M. on Thursday following a downgrade by Morgan Stanley analyst Steve Beuchaw from Overweight to Equal-Weight. In his note, Mr. Beuchaw cited “slowed growth” and an “elevated multiple,” which led to him lowering his price target from $300 to $270.

Reading the Tape

Reading the tape was pretty tough since the tape was very thin and spready. We had spreads up to 50 cents, but you could see market makers positioning and hitting the bids before the new moves.

Technical Analysis

254,50, 250,40

Trade Management

I patiently waited for a retracment in this name. Got the idea from the scanner and then checked the news and RVOL accordingly. The retracement was quite interesting, since there was a timing confluence with the 30 min chart. Got above 254,20 as keylevel, retraced and my entry was above at 256.56. With the end of the 30 min period we were below that keylevel on the 30 min chart, which was a good way for my analysis, whether I could be right or wrong in this stock. We then retraced right into the EMA and had I nice candle with lot of volume. I did not take the opportunity to add to the position altough the add would have been right below keylevel and volume and price action looked great.
Missed opportuntiy to get bigger!
Later we did the exact same thing and the next key level was still away, so I took the opportunity. Added 20 shares instead of 40 which was good. In the future, once I get to the point when I trade only those good setups, I need to get bigger with the adds.But for now this was a good experience!
Let the complete position run right into my key level and took everything off.

Trade Review

Overall very good Setup and good use of 30 min chart and keylevels. Must add with the first EMA pullback with this clear volume indication. Good second add since we had way to go to the keylevel and market as well.