This Is Why You Should Watch The Opening High
Pacific Sunwear of
California (PSUN) failed to take out the 20-day EMA and formed a
bearish tail last Friday. This morning PSUN was downgraded by JP Morgan to
Underweight from Neutral.
09:42:23 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
Target |
Current Price |
Posted By |
|
Sell |
PSUN | sell stop at 21.28 | pullback | 21.43 | 21 | 21.33 |
TK |
As you can see below, the stock
gapped below the lower Bollinger Band and immediately attempted a recovery
rally. But the stock struggled to take out the opening high, and it formed a
narrow range bar. This was a potential reversal signal. I placed a sell stop
just below the narrow range bar.
09:47:07
Follow up on PSUN
Cover half to take a 10-cent gain. Move stop to breakeven.
If you have questions, feel free to
mail them to me.