Here’s How To Manage A Trade After A Bullish Price Bar
The market is trapped in
a narrow range. As you can see below, S&P 500 Index is moving
inside of a 4-point range. It is definitely a sleepy market.
Four days ago Martek Biosciences (MATK) gapped down, but it formed a
bullish long tail. Some traders thought the stock was ready for a minor rally.
Look at the daily chart below (as of yesterday close). The expected rally never
materialized. Buyers were no longer interested in this stock.
10:13:41
(From TradersWire)
Martek Biosciences (MATK)
is bouncing off its declining 8-day EMA. Short MATK if it slips below 42.15.
Target is near 40. Place a stop just above today’s high 43.10. MATK is trading
at 42.66, down 0.34. Â
There were whipsaw movements, but shortly after 11:00 AM, MATKÂ moved below
42.15 for the second time. Around 12:30, the stock tested its intraday low and
bounced off. That action made me decide to take a partial profit.
12:31:12
(From TradersWire)
Follow up on the 10:13 story (MATK)
Adjust your stop to breakeven and take a partial profit. MATK is trading at
41.56, down 1.44.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.