Here’s An Opening Reversal Layup
Even though general
market conditions can quite often “take out” a well defined pattern
in a strongly trending stock, it doesn’t necessarily mean that it’s time to stop
watching.
10:19:25
Intraday Setup Alert
From the Nightly Daytrader’s
Report Avocent (AVCT)
has rallied out a FlipTop
opening reversal pattern. The stock was highlighted last evening as a high
relative strength issue forming an extended Slim
Jim. The pattern was broken on what looks to be general market angst in the
opening 30 minutes, but has subsequently rallied to reestablish strength
confirming its daily chart rankings. AVCT is trading up .07 at 25.10.
Sometimes we can’t put up alerts fast enough, and in
this particular case our TradersWire post came out right after the optimal entry
point of 24.92, but early enough to participate out of a first range
consolidation break out.
The real point to today’s lesson is to always stay
prepared for the next high-probability setup with your lists of high and low RS
issues. You never know what opportunity the market will present next. The best
you can do is always stay prepared, and with Avocent, that’s looking pretty
good.