This Is One Way To Use Outside Bars In Your Trading
Chevron Texaco (CVX)
agreed to buy Unocal Corp (UCL) for $16.4 billion. I thought UCL
would jump at the open, but it actually gapped down. Needless to say, the
speculators were looking for much higher buyout prices.
10:27:38 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
MWD | buy stop at 57.42 | pullback | 57.27 | 57.80 | 57.25 |
TK |
Morgan Stanley (MWD) gapped up well above
the upper Bollinger Band and began to sell off immediately. As you can see
below, the center line could not stop this decline, and the stock proceeded to
approach Friday’s closing price. Shortly before 10:30 AM, MWD formed a bullish
outside bar. It could be a potential reversal situation. I placed a buy stop at
57.42.
10:47:14 (from TradersWire)
Follow up on MWD (Pt 2)
It has hit our target price. Sell the rest, or move stop to 57.60.
T.Kamada
If you have questions, feel free to
mail them to me.