This Is One Way To Handle A Gap
I talked about Citigroup (C) for a
potential bottom fishing play in yesterday’s Nightly Daytraders
Report.
Citigroup
(C) tested the Fibonacci projection level successfully and formed a bullish
tail. We are looking to long the stock if it trades above today’s high (42.65).
Our target is near gap zone, but the issue may struggle to take out 43. A stop
can be set near today’s low (42.10).
Citigroup gapped up and opened above Monday’s high. Should you
immediately buy the stock? The size of this gap was only 21 cents, about 0.5% of
the share value. You could have bought the stock at the open and place a stop
just below yesterday’s close. Another way to long the stock was to place a
buy stop order just above the first 30 minutes high. After the order is filled,
you can place a stop just below today’s low.
Have a nice afternoon session.
If you have questions, feel free to mail them to me.