Here’s An Explosive Move Out of A Neutral Pattern
If you’re going to play an
‘explosive’ move before the holiday, sometimes its best to start off neutral and
wait for one side to say mercy.
10:11:44
Intraday Setup Alert
With the holiday weekend almost upon us,
Magal Security Systems (MAGS)
should have some nice intraday movement–down .55 at 20.35. Considering the
stock’s recent run up versus the ‘security’ factor in buying the theme stock,
there is conflicting evidence that should entice one group to quite possibly
‘give it up’ in today’s trade. Currently, the intraday trade has the MAGS
forming a symmetrical
triangle on the 5-minute chart. A pattern break in either direction might be
considered a way to play potential momentum in the stock.
By waiting for one side to say ‘mercy’, traders
hoping on board the pattern momentum can often be found saying their own version
of ‘merci’ not much later on after the one side capitulates.
Chris Tyler