When The Pre-Market Signals The Low
Pre-market trading is not for everyone. Quite
often there’s a good deal more volatility, in part due to less liquidity, that
many traders rely upon for trade decisions. With that said, one of the arguments
for possible trade consideration during this time period, is that it’s also
quite common for stocks being driven by news-specific events to find their lows
before the ‘Opening Bell.’ If you have substantial support for a price zone,
maybe it’s time to acknowledge the old saying, ‘the early bird gets the worm.’
Before the market opens each morning, I personally
try to put up price support levels to our members, under the LiveAlerts. I don’t
post individual levels every day, mind you. I have to see something interesting
happening to the stock in the pre-market, that also happens to line up closely
with what I consider to be significant levels, before I decide to make a post to
the wire.
Today happened to be one of those days. One post
went up for IGEN International
(
IGEN |
Quote |
Chart |
News |
PowerRating) as the stock had gapped substantially
lower on company specific news.
09:19:54
Pre-Market
Levels
|
IGEN
|
|
| Support | 23.35 – 24 = Weekly AB=CD 100% projection & 62% Fib. Nov.00-Jan. 03 |
You can see from IGEN’s price action before the
official start of trade that the games had already begun. A ‘Kings &
Queens’ reversal formation off of well-defined weekly supports made the case for
looking to ‘play’ this one a bit earlier than normal, and giving you the
opportunity to start your day off with something a little stronger than your
usual cup of Joe.