This Is Why You Should Pay Attention To Intraday Lows
Estee Lauder (EL)
broke down below a support line on increased volume and closed near
the day’s low yesterday. I was looking for a continuation of this downward move,
but EL gave us a buy opportunity this morning.
11:03:52 (from TradersWire) The clock is
two minutes fast.
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
EL | buy stop at 38.37 | double bottom (5-min) |
38.26 | 38.50 | 38.30 |
TK |
Let’s look at the 5-minute chart. EL opened near
yesterday’s low and quickly sold off. Shortly after 10:45, the issue hit a new
low of the day, but the MACD was actually going up. It was a positive
divergence. I placed a buy stop just above the high of the 10:55 bar.
11:39:48
Follow up on EL (Pt 2)
It has hit our target. Sell remaining shares, or re-adjust your stop. Next
target is near the 20-period EMA on the 15-minute chart.
If you have questions, feel free to
mail them to me.