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Gapup

AAPL - Buy Now or Wait? It's Your Call...Everyone has a different opinion about the answer to this question. I have learned that any day can be the right day to begin a trade or investment. The real question is how to limit the risk. This goes for Long and Short investments. Why didn't you buy AAPL at $80? Did you think it had jumped too much after the $5 gap up? This gap up was nice for current owners of AAPL. But it may have been a turn off for anyone thinking about getting in. Turns out it was a great opportunity... Let's go through the chart. Circle 1 - Price crossed above the red downtrend line when it gaped up. If you bought AAPL here, you could have set a stop at $80 and been off to the races. Circle 2 - Price crossed above the red downtrend line. If you bought AAPL here, you could have set a stop at $89.50 and been off to the races. How do you know when to get out of an investment? Should you sell everything? Just a portion? It's your call... All I can tell you is I like to use an uptrend line to help make my decision. The original uptrend line that touches the low of day one after the gap and the lowest price in circle 2 is the uptrend line I drew. Problem is the price closed below my uptrend line on August 5. Now in this case, the price only dropped $3 - $4 before turning positive again. But there was just as much of a chance that the price could have dropped much more. I believe in protecting profits. So selling a third or half was a good decision at this point. Once the price turned back up, I adjusted my uptrend line lower and used that for a place to sell the rest. On the topic of "adjusted trend lines"... If you have profits and you are willing to risk them then go ahead and make "small adjustments". The adjusted uptrend allowed for even more profits. What is the downfall to adjusted trend lines? They may lead to smaller gains or eventual losses if you are not careful. If you don't have profits, don't adjust trend lines! Get out when you said you were going to. Honor your stops. Circle 3 - Price crossed above the red downtrend line. If you bought AAPL here, you could have set a stop at $93.25 and been in a good trade. ** Now realize that there needs to be another "Idea" published to talk about maximizing profits on the way up. This "idea" would be far too long if I included that subject here. Circle 4 - Price crossed above the red downtrend line when it gaped up. If you bought AAPL here, you could have set a stop at $101.25 and been off to the races. It is also worth noting that the new green uptrend line that starts on this gap up is a steeper line than the adjusted uptrend or even the original uptrend. So the price is rising faster than it has in months... Circle 5 - Price crossed above the red downtrend line. If you bought AAPL here, you could have set a stop at $108.25 and been in a good trade. Now is the moment of truth. There is no "Circle 6". I can't see into the future so I can't tell you when it will happen. Anyone who says they can should be approached with caution... What if you buy now? To me, the most important thing is that you remember the investment is based on an uptrend line. Which means we all agree the price could come back to the uptrend line. Where is the uptrend line now? Yes, it is about $115. Are you willing to lose $3ish (2-3% of your capital) before "finding out" if the price will go back up? What if you wait? If you wait you are probably saying, "I would rather buy AAPL closer to $115, $116, $117, etc. The good news is you won't lose any of your capital by waiting. Bad news is you may miss out on a great investment or trade. Many investors will tell you "don't chase". Why? Because successful investing is all about managing risk. The risk is at a minimum when you begin an investment close to the trend line. Trade What You See. Not What You Think, or Feel, or Hope, or ... Protect Profits & Limit Risk
NASDAQ:AAPL
by TheTrendLineInvestor
ODFL approaching $80ODFL is a good trending stock, but volume is fairly thin. This can affect liquidly when entering and exiting trades. The weekly uptrend has been long and linear - the pullbacks have become a little deeper but are more than acceptable on this timeframe. On the daily chart, however, the pullbacks have caused a bit more of a concern. During early 2014 there were better charts to trade. Since the October 2014 pullback the trend does seem to have settled down. If you're comfortable with fairly large stops and low volume this could well be a long-term buy opportunity.
NASDAQ:ODFLLong
by iAnneTrader
ROST gaps up on earningsROST could offer a good near-term buy on Fridays' gap up on higher volume. The bar was very bullish - adding to the momentum to the upside - and easily cleared the 2013 pivot high. For longer-term traders, however, the large gap up could easily be filled - so we would want to see some sort of pullback or retest of the 2013 high before considering this a buy opportunity. And by that time we could well be approaching the psychological resistance of the 100 figure. Since breaking above the 200dma in August the trend has been very linear so if this continues and price clears $100 then a long-term buy could be in the offering. One for the watchlist.
NASDAQ:ROSTLong
by iAnneTrader
APD potential measured move upAPD has been in an uptrend all year but the deep pullbacks have made it too unpredictable to long-term trade so far. On the daily chart an inverted head and shoulders chart pattern offered an opportunity to trade a measured move up. Since the break of the pivot high (which also confirmed the H&S pattern) there have been two gaps up on slightly higher volume. This had the potential set-up for an almost $20 move up but, if you missed the first gap, the risk:reward is rapidly declining. It offers a very good buy for a short-term trade as the momentum is up (with the gap, volume and bullish bar all in the direction of the trend). But for longer-term traders you may want to now wait for a break above the $150 half figure before looking to trade this one.
NYSE:APDLong
by iAnneTrader
TSO gaps up on higher volume - againTSO gapped up on 31st October above the long-term pivot high of $65.75 and the more recent September pivot high of $67.07. The October gap was too soon to consider a long-term buy as price had not really cleared 2013s high of $65.75. Thursday's bar offered a better opportunity with a break above the November high with a clearly bullish bar. Despite the subsequent gap up on Friday this bar was not bullish - in fact it was on the bearish side - although volume was higher. If you managed to buy into TSO on Friday then a long term position could well pay off. If not then you may prefer to wait for price to develop a little more into a more substantial trend. It does offer a buy opportunity but maybe not just yet for the more cautious, longer-term trader.
TLong
by iAnneTrader
DLTR gaps up on higher volumeOn yesterdays earnings announcement price gapped up on DLTR (with higher volume). This offers a good near-term opportunity to buy this stock for a quick profit. Ideally, it would've been nice to have seen a more bullish bar. For longer-term opportunities this stock has trended well in the past, but since June 2012 the trend has not been able to re-established itself. In late October 2014 the most recent upward wave began and, after breaking the October 2013 pivot high at around $60, it has shown more strength. With two gaps up on higher volume and a retest of the October 2013 pivot this could well turn into a good longer-term opportunity, again.
NASDAQ:DLTRLong
by iAnneTrader
PETM gaps up on earningsPETM has undergone a deep and prolonged pullback lasting over a year. Yesterday price gapped up on higher volume and broke through previous resistance. The bar was very bullish, which gives a good indication that price could well continue it's upward momentum over the next few days. However, with price only just breaking such a strong pivot point the potential bull move could be short-lived. If you trade gaps keep your stop tight. If you're looking for a longer-term opportunity this chart needs more time to develop so stand aside.
PLong
by iAnneTrader
LOW going higherLOW has been trending up since late 2012 but the ride has not always been smooth. From November 2013 to August 2014 price was stuck in a prolonged pullback/consolidation around $50. Then in late August price broke above the November 2013 pivot high, retested it (see the weekly chart) with a spike below the resistance-turned-support and continued it's upward momentum. On the daily chart LOW broke above the 19th September pivot high and a good opportunity to buy into this stock presented itself with the first gap up on 31st October. If you missed this then yesterdays gap offers a second opportunity. Trading gaps is a near-term strategy but LOW looks in a position to trend over the longer-term, too, so this set-up could apply to either.
NYSE:LOWLong
by iAnneTrader
MMM strength to the upsideMMM has periods where it trends really well. But this year there have been two deep pullbacks which would've stopped most trend traders out of their buy positions. Since price broke above the September pivot high the candles have not been overly convincing. There was a gap up on 31st October but it was a doji, followed by a gravestone doji, which did not inspire confidence. However, the next bar broke out on higher volume so this could've been the first opportunity to get into this trade. Yesterday another bullish flag was confirmed (on higher volume) offering traders the opportunity to now consider entering long on MMM (or add to their trade).
NYSE:MMMLong
by iAnneTrader
7
AGN gaps up over $200AGN often crops up on my watchlist. It has been in a bull trend for several years but frequently experiences prolonged consolidationary periods. The stock has been in an uptrend since earlier this year but got into a $145-$175 range from May to October. But, despite the market-wide October pullback, AGN manage to break out of this range, retest the previous resistance and continue its upward trajectory. Yesterdays bar gapped up on higher volume and closed well above the $200 mark and previous pivot points - offering a good short-term buy opportunity. The one negative on this potential trade is the nature of the breakout bar - it's extremely bearish. If you don't get triggered long onto this trade within the next bar or two you may want to remove your order.
ALong
by iAnneTrader
WMT gaps up on earningsWMT has been in a trading range for almost a year. Then yesterday, on earnings, price gapped up - breaking previous resistance. How good a buy opportunity is this? On the weekly chart the 50ma is flat - this gives an indication that the trend is flat. After a year of no trend it would be far too early to get into a long-term long position. While price is bullish, there isn't any real conviction of a strong bull trend. On the daily chart, however, yesterday price gapped up through the resistance on high volume (due to earnings). In the near-term there may well be further movement to the upside so a quick profit could be realised. Overall, however, this stock needs to retest the previous resistance ($81.37) before a good, longer-term buy opportunity takes hold.
NYSE:WMTLong
by iAnneTrader
LEG (Leggett & Platt) clears consolidationLEG has been trying to breakout of a multiyear consolidation since May 2014. On the weekly chart I have drawn on the 1998 and 2004 highs (to highlight this point) and the more recent consolidation zone which lasted just over 5 months. Finally in October 2014 price made a big bullish move (on earnings and higher volume) but this was far too early to consider a buy on this stock bearing in mind both the long-term (1998-2014) and shorter-term (May-October 2014) consolidation zones. There was a small pullback and gap up on 31st October and for some this would've been a good opportunity to enter long. For others the added confirmation of a bullish flag above $40 presented an alternative. Either way, LEG is looking like a good bullish stock.
NYSE:LEGLong
by iAnneTrader
MNST breaks through $100MNST was in consolidation for over a year before a large gap up in August 2014. Prior to this it had been in a good, linear bull trend for some time. So now the consolidation period is over we would like to see a continuation of previous behaviour. While the uptrend began again on the August gap up price took a little while to get going. Then, on 31st October, price finally broke through the 100 figure, which can be a psychological area of resistance for some traders. It did not break through convincingly - a small indecision bar - so a retest of $100 was not unexpected. Now price has gapped up again, on higher volume, a buy opportunity presents itself.
NASDAQ:MNSTLong
by iAnneTrader
WFM gapped up but no opportunity todayWFM has been in consolidation for several months, beginning with the large gap down on earnings back in May. On earnings this time price gapped up out of the consolidation zone, on higher volume. On the daily chart there is no resistance until 47.70, the bar was very bullish and closed above the 200ma. Initially this may look like a good near term opportunity. But on the weekly there could be earlier resistance at the 50ma ($45.42 zone). Plus today NFP is announced. In recent times NFP has not has the impact on the markets it has had in the past, but it still makes sense to stay out of the market for a day or two leading up to it. A small price to pay to preserve capital.
WLong
by iAnneTrader
3
THG gaps up for short term opportunityTHG is not a great trending stock but yesterday's gap up on the daily chart offers a possible short term opportunity. This stock may continue its general move to the upside but it is too erratic (at present) to trade with confidence for the long term. Price has dropped below the daily 200ma on several occasions recently, which prevents it being a good trend. However, there is no reason that the bullish move shouldn't continues over the next few days. Beware that profits could be limited as there are the highs of 2000 ($74.25) and 1998 ($75.25) as possible resistances to contend with, as well as the figure 70.
NYSE:THGLong
by iAnneTrader
UAL retested long-term resistanceUAL has not been in the best of trends although it has been heading up since the 2009 low. The monthly ranges can be large, which makes it difficult to trade. September 2014 saw price fakeout above the 2007 high so another deep pullback was not unexpected. More recently, however, price again broke above the resistance and this time has stayed above. There was a small flag, the base of which retested $51.60. On 3rd November the flag was confirmed and yesterday (4th November) we had a gap up on higher volume. Unfortunately the breakout bar was not a bullish one (potential shooting star) so we could see the gap filled. Otherwise short-term there is a buy possibility.
ULong
by iAnneTrader
$DRL Gap Fill TradeFollowing the breakout on news today I will be watching for a gap up or strong open that breaks the previous resistance level of 7.91 and through 8.00. This is provided that it holds above 8.00( I would like to see a break and retest of 8.00 ideally due to shorts targeting the stock for an over and under 8.00 or any strong opening move) If we squeeze shorts and hold above 8.00; this should signal continuation and a gap fill towards target area of 9.61. As always use technical signals for entry. Good luck!
DLong
by AcetheGap11
ITNC gap up on upside guidanceIntel set new 5 years after it announced its sales would be better than it had anticipated earlier in the year. Intel’s news is almost certainly good for Microsoft (NASDAQ: MSFT) and Hewlett-Packard (NYSE: HPQ) since Intel is the leading maker of chips for PC’s. The PC market has been so mature that most analysts assumed that Intel’s future would be relatively weak. As PC sales have begun to fall worldwide, tablet and smartphone sales have risen sharply. Any improvement in PC sales will help Microsoft, which is the major provider of PC operating systems, and Hewlett Packard, the leader in PC sales. Technical Analysis: Now, we have gap low at $29.56 which should act like support and high at $30.06. I think it needs couple of days of rest, investors and traders need time to absorb this big movement Check my previous idea in the link below:
NASDAQ:INTCLong
by andrew.berg
CTXS laggard play, looking for move through 200MABig Picture: US markets are strong, so I like long ideas. Despite, this stock looks weak I think if market break up failure scenario will come into play money will rotate from stocks that are on highs to underperforming stocks. And if market will continue showing strength momentum will cautch up this stock as well. This technology company grew up from $20 since early 2009 and found top in 2011 at $88. From then it entered into big consolidation wedge with bottom close $50 (aorund half of that big igniting move) means that long term investors still control price action. Short Term tech analysis: Stock gapped up $59.46 on earnings on 24 of April, sold off from 200 MA but bounced off from shorter term moving averages with pivot low at $57.77. Right now, it is in front of 200 MA building nice upper level base. Trade Plan: I like entry here at $60.37 with stop below $57.77. Break up and close above 200MA could lead to $62.25-$63.44 resistance zone, then we have gap down pivot point at $66.48. Macro target is mid $70ish area - top of wedge.
CLong
by andrew.berg