Here’s How An Early Entry Cashes In
News reversals are a great way to gain
entry into stocks experiencing temporary price imbalances caused by
an emotional crowd reaction. At TradingMarkets we have a well-defined way for playing
these opportunities every day with our subscription
service, but sometimes we can find an even earlier technical entry, to get a
head start on even this group of elite traders.
10:37:28
Intraday
Setup Alert
Coinstar (CSTR)
is still trading up some “change”, about .77 at 16.49 off an analyst
upgrade. The intraday action has the stock testing opening price bar lows in
the form of a consolidation. A break below these lows could be an early trigger
for a news reversal strategy, as the prior day’s high is 16.10. The stock holds
a 3
Month RS of 6 with a downtrending ADX of 49.
And then the second alert entry defined by our News Reversal Service…
11:39:03
Intraday Update
Coinstar (CSTR)
has tested the prior day’s high. The actual session low was .01 shy of
triggering a news reversal, but now, after pulling back off these levels, the
stock appears ready to make another attempt at breaking lower out of a low level
consolidation. CSTR is up .52 at 16.25.
Our first “early” alert triggered out a pullback test of the
opening bar low, as the stock penetrated the 16.35 level. The prior bar high,
which acted as a pivot and formed an early morning downtrend from highs would be
a natural choice for initial stop loss placement, giving us .26 worth of risk,
and a well-defined exit for our short technical entry into Coinstar.
Well, you can see from the above, Coinstar didn’t even come close to
“short changing” us. Subsequently, we sent out our second alert,
triggered off an official news reversal entry, and the end result was over
“100 pennies and change” in our favor, and money in the bank!!