This Is Why You Should Watch The Lower Band
QLogic (QLGC)
formed a bullish bar (hammer) at 11:25 AM. It appeared the stock was
ready to bounce off the low.
11:38:33 (From TradersWire)
| Action | Symbol | Order Type | Setup | Stop | Current Price |
| Buy | QLGC | Buy at Market | positive stochastic divergence |
34.70 | 34.83 |
But, as you can see below, QLGC did not rally
immediately. It had to re-test the intraday low. Look at the stochastic and
Bollinger Bands. It’s not so drastic, but the stochastic is showing a positive
divergence. Although the price violated the day’s low, the stochastic refuse to
go down. In addition to that, QLGC broke down below the lower band. This kind of
strong downward momentum is not usually sustainable. We decided to buy the stock
at the market.
11:44:09
Follow up on QLGC (11;38)
Sell half and adjust stop to breakeven.
Have a productive afternoon session!
If you have questions, feel free to mail them to me.
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