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This Is Why You Should Pay Attention To Opening Prices

  • June 1, 2005
  • Tsutae Kamada

Medis Technologies (MDTL)
CEO appeared on CNBC, and the stock gapped up at the open. Watch out
when a stock opens above the upper Bollinger band. Normally, this kind of
momentum is not sustainable. 

In my last night report, I mentioned St. Jude Medical (STJ) as a
potential buy. As you can see below on the 5-minute chart, this is a similar
situation as Medias Technologies above. STJ gapped above the upper Bollinger
band. It was already well above my planed buy price of 40.36. As I said earlier,
this kind of strong movement does not last long time. Wait for a pullback, and
look for a better entry point. Shortly after 9:45, STJ tested 38.2% retracemnet
level successfully and formed a small hammer. Your buy point would be just above
this hammer.

Feel free to mail me your
questions.

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