Here’s Why You Should Pay Attention To Inside Bars
Avon Products (AVP)
announced its fourth quarter earnings of 61 cents per share, in line
with the Reuters estimates consensus. The stock gapped up above the upper
Bollinger Band at the open and immediately sold off.
09:53:37 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
AVP |
Buy stop at 42.01 |
pullback |
41.80 |
42.25 |
41.97 |
TK |
As you can see on the 5-minite chart
below, AVP failed to hold above a horizontal support line. It decisively broke
down below its 20-period MA and even slipped below the lower Bollinger Band.
Shortly after 9:45, the issue formed an inside bar. This was a potential
reversal situation. We placed a buy stop at 42.01.
10:06:48
Follow up on AVP
Sell half to lock in 18 cents. Move stop to breakeven.
 Â
If you have questions, feel free to mail them to me.