imzeeshan

2018 Week 38 - Trade Analysis - FNJN

NASDAQ:FNJN   FINJAN HOLDINGS INC
In Week 38 of 2018, I traded FNJN -2.43% .

Trade summary:
Buy 400 @ 4.26 on 17th Sept 2018
Sell 200 @ 4.52 on 20th Sept 2018
Sell 200 @ 4.76 on 21st Sept 2018

Trade Details:
1. Buy 400 @ 4.26
The reversal from downtrend to uptrend was indicated by the Heikin Ashi chart on 12th & 13th Sept 2018. The long tail on 12h Sept 2018 indicated buying pressure and support at 50 EMA . Price action on 13th Sept 2018 confirmed this and the reversal began.
I drew the Trend based Fibonacci from the low of 20th Aug 2018 to the high of 28th Aug 2018 to the low of 12th Sept 2018. This gave me entry levels 4.30 (38.2%) and exit levels 4.56 (61.8%) & 4.76 (78.6%). Risk reward ratio of 2.71.

17th Sept 2018 marked the 3rd day of reversal from the low of ~3.86. I was expecting FNJN -2.43% to close above the 13 EMA which it did. 13 EMA was at 4.20 and FNJN -2.43% closed at 4.25. I had placed a limit order @ 4.25 but got filled @ 4.26. All of this was supported with steady rise in volume .
Another important but not used indication was the DMI +/- lines crossover on 17th Sept 2018.

2. Sell 200 @ 4.52
In this scenario, the Fibonacci 78.6% level is the primary resistance level and 61.8% is a secondary resistance level . The price can be rejected from these levels within a week. If the volume was double of the average on the day it crossed 13 EMA , these resistances would have been tested, but since the volume was average - price has a good chance of being rejected at 78.6%. Place sell limit order at 4.52, since I bought early at 4.26 (0.04 less 38.2% level) I placed early sell order also 0.04 less of 61.8% level.

3. Sell 200 @ 4.76
With MACD indicating a crossover, histogram on the positive side, volume growth during the week; it was clear that 78.6% levels will be hit. So I placed a sell limit order at 4.76.

Future:
FNJN -2.43% closed with long upper shadow indicating selling pressure. In my opinion, it's going to continue to trade in the range of 3.86 and 4.76 until weekly volume doubles or triples the weekly average.
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