Failure and Go
Not all gaps are created equal. The power of a gap that has momentum behind
it when a rubber band condition "snaps back" can pay off for an observant
trader.
09:42:47
Intraday Setup Alert
Express Scripts (ESRX)
has formed a Haggerty Trap Door following its upside gap. ESRX is up 5.35 to
56.60.
This setup does not play out, but the stock is oversold and has bullish news
out today, after it is announced that ESRX is cooperating in an SEC
investigation, but is not a target. After selling off 10% last Friday, the stock
rebounds on the news, but does not continue lower after the Trap Door does not
take off.
The stock forms a triple top (slanted) and when it starts to
move out of it, we make a note of it in the
TradersWire Interactive chat room.
From here, the stock climbs 3 points higher, allowing traders to
take advantage of the move. It may sound over simplistic, but if stocks don’t go
down, they likely will go up. The technical patterns allow you to obtain
confirmation and time your entry, then set a stop to protect yourself in the
event things don’t go your way.
Until tomorrow,
Duke