This Is Why You Should Follow A Stock After A Breakdown
palmOne (PLMO)
formed a bearish tail yesterday,
and it closed just below its 200-day EMA as you can see below. I decided to
watch the stock as a short candid for Wednesday.Â
10:39:37 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
PLMO | sell stop at 24.89 | pullback (5-min) | 25.02 | 24.72 | 25 |
TK |
Now, let’s look at the 5-minute
chart from this morning’s session. While I was looking at other stocks, PLMO
broke down shortly before 10:00 AM. I totally missed this trade. PLMO was on my
watch list. I failed to catch this breakdown. Anyway I decided to wait for a
pullback. At 10:30, the stock hit the middle Bollinger Band, and the next bar
was an inside bar. This was a reversal signal. I placed a sell stop just
below the inside bar.
10:53:14 (from TradersWire)
Follow up on PLMO
We are covering half to take a 12-cent gain. Move stop to breakeven.
Feel free to mail me your
questions.