IWOV’s Narrow Window Of Opportunity
The best traders have a big
pattern vocabulary and are alert enough to jump on different combinations as they
arise. It’s fine to know a strategy or technique, but they’re of no use unless
you have a plan of attack and are able to execute in a moments notice.
On Wednesday, TradersWire
spotted a narrow window of opportunity in Interwoven
(
IWOV |
Quote |
Chart |
News |
PowerRating).
At 13:04 PM ET the War Room spotted
the following setup:
Interwoven Inc (IWOV)
is bouncing off its 50-day moving average after pulling back from the
September 25 high. Trading volume is already almost twice the daily
average, and traders are anticipating a continuation of this rally. IWOV is
trading at 98 7/8, up 4 3/8.
The high-volume bounce off the
50-day moving average was also helped by support provided by a four-month
trendline. These factors coming together and feeding off a largely positive
market produced a bounce whose momentum carried through through the rest of the
session. The astute trader at this point does not say to himself, “Ah
shoot, it’s already too late. I’ve missed out on this 4-point move.” Rather, the trader will ask, “Given the
conditions, how much further can IWOV’s momentum take it?
Not hesitating during a narrow
window of opportunity can make the difference between triumph and
disappointment. By the end of the
session, IWOV was up 14 3/8 points.
Till Thursday,