This Is Why You Should Wait For A Pullback
The headline looked good.
“Rambus says it gets favorable ruling”. I did not check the details of
the story, but the stock gapped up at the open.
10:03:02 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
RMBS | buy stop at 17.82 | pullback | 17.66 | 18 | 17.80 |
TK |
When a stock starts strong, I
normally wait for a pullback to open a long position. As you know, strong stocks
often make minor corrections before resuming their uptrends. RMBS tested its
support level successfully on its 3-minute chart, and it looked ready to move
out of a pullback. I placed a buy stop at 17.82.
10:16:26
It has hit our target price of 18. Sell the rest , or move stop higher.
If you have questions, feel free to mail them to me.