Stocks Analysis Using Price Action
- Thread starter Gringo
- Start date
Exited for a decent gain at Resistance after the low volume open and two failed attempts to break 23.40 which I mentioned previously.
I wasn't too patient with the stock, but the opening hour looked pretty lack-luster to me and it doesn't seem like renewed support is going to come from anywhere during the mid-day, especially right before a holiday.
Price for DAL has breached the demand line after quite some time. Strangely enough all three DAL, LUV, UAL have breached their demand lines at the same time. Now this could be a symptom of an industry condition or too much synchronicity amongst the airlines.
This is simply a warning to stay alert. After such a rise a normal correction isn't too much beyond normal. This place is neither for the initiation of a long, nor for the initiation of a short. It's only for monitoring.
Gringo
This is simply a warning to stay alert. After such a rise a normal correction isn't too much beyond normal. This place is neither for the initiation of a long, nor for the initiation of a short. It's only for monitoring.
Gringo
Doesn't seem to be that much of an interest in stocks these days.
Picked up ANIK this morning for a nice short. I am interested to see how it behaves tomorrow.
On one hand, it would be nice to ride this down to a BO attempt at the bottom of the purple channel and re-evaluate then, if conditions are favorable.
However, the fact that price has moved so far today inclines me to be fairly strict with my exit criteria. Don't want to pay a dollar before covering a retest, or ending up just seeing price start drifting around the upper bounds of the channel, especially since this position is counter-trend.
We'll see what happens.
Edit: Just noticed that the slope of the pink MP line on the first chart is pretty skewed, should be much more gradual than it is. I considered fixing it but then remembered I'm not a perfectionist.
Picked up ANIK this morning for a nice short. I am interested to see how it behaves tomorrow.
On one hand, it would be nice to ride this down to a BO attempt at the bottom of the purple channel and re-evaluate then, if conditions are favorable.
However, the fact that price has moved so far today inclines me to be fairly strict with my exit criteria. Don't want to pay a dollar before covering a retest, or ending up just seeing price start drifting around the upper bounds of the channel, especially since this position is counter-trend.
We'll see what happens.
Edit: Just noticed that the slope of the pink MP line on the first chart is pretty skewed, should be much more gradual than it is. I considered fixing it but then remembered I'm not a perfectionist.
I haven't tried this before, but I thought to myself, why not reverse and try to squeeze a little more juice out of this thing for the probable retracement after such a sharp multi-day drop.
I'm sure the market will let me know if I'm being too over-zealous here. If it holds above yesterday's close and is able to make a convincing higher low I'll start analyzing it for an overnight position.
Quick EOD update. Picked up TASR after a quick scan this morning but things aren't looking as optimistic as before. Whether tomorrow will bring a continuation of the longer-term down-move, or price will continue to climb the green channel remains to be seen.
When I take a step back it's actually not looking too bad, price is up above yesterday's close on rising volume after taking a trip back to the bottom of the channel. No blatant indications that we're seeing something besides another retracement at this point. Quick exit will be needed at tomorrow's open if there's any sign otherwise.
ANIK established point 3 of it's up-channel, making it pretty easy to monitor. Curious to see what it does tomorrow as well. Might start looking at delayed entries if it seems like I have to keep holding through mid-day retracements like this in order to get a better entry price, at least with the long side. Not convinced that would save more money than it would miss out on at this point though.
When I take a step back it's actually not looking too bad, price is up above yesterday's close on rising volume after taking a trip back to the bottom of the channel. No blatant indications that we're seeing something besides another retracement at this point. Quick exit will be needed at tomorrow's open if there's any sign otherwise.
ANIK established point 3 of it's up-channel, making it pretty easy to monitor. Curious to see what it does tomorrow as well. Might start looking at delayed entries if it seems like I have to keep holding through mid-day retracements like this in order to get a better entry price, at least with the long side. Not convinced that would save more money than it would miss out on at this point though.
You are entering based on the mini-support holding. You are continuing to hold when that min-support fails. Yes, the entry is late in the first place but lets not talk about it for now. The price is going against your position from almost the start. Why not exit and reconsider your options instead of coming up with ideas and 'hoping' the next day will tell or bring something positive.
Below I have annotated the chart a bit for your consideration. I used the daily for context. Looking at the smaller intervals what I have written above is sufficient enough to be out. You're focusing too much on the mini support/resistance levels which occur at almost every interval you can pick. Even at 1 minute you'll see these mini trading ranges with their own s/r levels. Are these levels really worth it? Keep the context and the significance of these levels as compared to larger interval levels in mind when making trading decisions.
Gringo