MyTradingJournal

Price action & Psychology - MTFA, Double bottom

Long
NASDAQ:CLVS   CLOVIS ONCOLOGY INC
Hello !

Key points :
  • Double bottom
  • Significant support area , also on higher timeframes
  • Bearish momentum is over

It looks like the bearish momentum that carried the stock price down is now over. That particular candlesticks tells us that an attempt was made to push the stock further down, but it didn't work out.

On the 5-min chart, the interpretation of that daily candle becomes clear, at market open the price went down ("Morning panic" I guess) and came back up to consolidate around the closing area. This tells us that the control of the stock is changing hands.

Be aware of that gap at 8.50 that might act as a resistance if the momentum is not strong enough.

The monitoring area, for scaling out, begins around 9.30.

Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.

***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***

Comments

Would this go up Tuesday as it hit way below 8.05?
+1 Reply
@Boom11, Hey, well there's honestly no way to predict whether the trade is going to work out or not.
On the hourly chart it seems like high 6th got rejected and the price moved a little after-hours.
I think it also depends how the overall market opens on Tuesday.
+1 Reply
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