This Is Why You Should Wait For A Pullback
A gap up is a sign of
strength. But so often, new traders buy the stock at the open and
regret.
09:57:48 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
BMY | buy stop at 25.13 | Long Gap Pullback |
24.98 | 25.28 | 25.08 |
TK |
Bristol Myers (BMY) exhibited
the unusual strength at the open. As you can see below, it opened above the
upper Bollinger band. It is not possible to sustain this kind of momentum.
Remember “reversion to the mean”! Sooner or later, the stock has to go back to
its normal price. Shortly before 10:00 AM, BMY touched the 20-period MA on the
5-minute chart, and I placed a buy stop at 25.13.
10:33:28
Follow up on BMY (Pt 3)
It has reached our target. Sell the rest or adjust your stops.
T.Kamada
Feel free to mail me your
questions.
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