This Is One Way To Use Divergences In Your Trading
The market opened
strong. Apparently people liked the monthly employment numbers
released this morning. As you can see below, Lam Research (LRCX) also gapped up,
but immediately sold off.
09:53:01 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
LRCX | buy stop at 30.01 | pullback | 29.88 | 30.30 | 29.91 |
TK |
It was a disappointing development
for those people who bought the stock at the open. In fact LRCX slipped below
yesterday’s close and recorded a intraday low. But, look at the stochastic. It
was indicating a positive divergence. I placed a buy stop at 30.01.
10:22:54
Follow up on LRCX (Pt 2)
It has hit our target. Sell the rest, or move stop higher.
T.Kamada
If you have questions, feel free to
mail them to me.