PBR Trade on May 24, 2018 09:38 from Felix: Tradervue User Stock Trades.

Bounce Play at premarket level after several downgrades

The Big Picture

market was moving down

Intraday Fundamentals

Downgrades buy tier1 firms:10:35:13am Petrobras Responds To Brazilian Trucking Strike — And Receives 3 Big Downgrades
Petroleo Brasileiro (NYSE: PBR), also known as Petrobras, was downgraded by Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley Thursday after announcing that it will temporarily cut diesel prices in Brazil.

Reading the Tape

Tape was massively thick. Traded over 60 mio shares the day, so it was difficult to read the level2, but you could get a feeling when sellers were in control. Many programs in that crowded stock, but overall sellers pretty much in control the whole day.

Technical Analysis

40 was resistance from premarket. support at LOD and below at 12.50

Trade Management

Went short at resistance with 800 shares, so 12 cents max stop. Did put in a double top on the one minute chart. Stop should have been the 46, and we never traded higher then 44. Volume gave a good story in this play. Sellers pushed it down aggressively, then double top, and once more more vol on the sellers side. Clear interbar indication. Could have been even heavier, as we came higher in the double top. It still cost me nerves to hold such plays, but was patient and disciplined. Could work with limit orders to make sure I trade my plan and not find myself with wrong prices. Fall down to 13.10 and moving back up.Putting in a lower high against neck of double top. 13.19 acting as main morning support and later significant resistance. Put some more risk on as we hold VWAP, came higher but sticked to my stop loss for that position, which was .36.
Good chance to get shorter at 10:24 am, as we tested the support from below and now becoming resistance. Stop could be above VWAP so 6-7 cents risk. Did move to 13 and bounced back. Took some of since the 5 min chart a significant more buyers at this level, which can be a reason2 exit for me. Took of 75% of shares.
Once again against 20 area, could have played the same play again.Now even smaller stops.
Came back down. and hold the 13 for quite some time. Did short it below with very small stop. (Entry 98. stop .03) Risk was 20$ which is way too small for this significant level. Could have easily traded 1000 shares at this spot. But nevertheless good to take more risk on.
Hold 91. Bounced up, which was some kind of shakeout, but i kind of expected this and stayed patient, stop was now 1 cent above the spike at 95 (96). went down to LOD at 12.75.
Excellent RR, if I would have been shorter. Nevertheless. Made a good job convering some at .84 and the rest at 90. Broke the trendline on the 5 min chart with more volume, which made it kind of tricky.

Trade Review

Overall very good trade. Need to lay out all the variables that go into this play. Could play it more defensively at the entry. Clear signal with double top. Overall very patient and focused! Good job.