Watching for a classic bounce play along a moving average. Waiting for price to stabilize and narrow and then ricochet off the MA.
This stock is recovering from a rapid rally and needs time to stabilize. The blue line is a moving average (50) and the black line is the expectation of the price movement.
Notice the 200 MA has a nice slope upwards and the overall trend is up.
Can watch for the following to take an entry:
narrowing price/ATR and collision with the MA moving upwards
Guppy MA to turn up
MACD to turn green again
big white candle with volume
Notice how it tagged the 200 ma twice before, will the third time be the charm? if so a buying opportunity for size-able gains.
This stock is recovering from a rapid rally and needs time to stabilize. The blue line is a moving average (50) and the black line is the expectation of the price movement.
Notice the 200 MA has a nice slope upwards and the overall trend is up.
Can watch for the following to take an entry:
narrowing price/ATR and collision with the MA moving upwards
Guppy MA to turn up
MACD to turn green again
big white candle with volume
Notice how it tagged the 200 ma twice before, will the third time be the charm? if so a buying opportunity for size-able gains.
Trade active:
Coming down to rest, watching now to see if it catches a bid. Trade initiated, small position.