MyTradingJournal

Price action & Psycholog - Pullback and gaps

Long
NASDAQ:ON   ON SEMICONDUCTOR CORP
Hello !

Key points :
  • Support : important zone on weekly chart, amplified by breakaway gap, previous resistance on daily chart
  • Pullback 50% Fibonacci
  • Exhaustion gaps coupled with higher trading volume
  • Despite the market drop on friday, it held the support

The support is on an important zone on the weekly chart, which explains why the breakaway gap formed. I can imagine people thinking "if it's not holding the support I'm selling" and some people started (probably because the overall market was weak) bidding lower prices pre-market.

On the way up, it is very clear that the stock encountered a resistance on that particular zone. The fact that it broke out, means that there has been a psychological shift in people's thinking. Which makes this zone now a decent support.

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

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

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out