Watching The Ducks Line Up
One of the ideal situations to be in as a trader is
to spot a potentially good pattern as it’s unfolding and then being able to
patiently wait to see if things set up properly for a trading opportunity.
Today’s action in Scios
(
SCIO |
Quote |
Chart |
News |
PowerRating) is a good example of this.
In Monday’s action, we see multiple factors in SCIO starting to take shape
off a sharp pullback. The stock is pulling back to potential support at:
- the level of its breakout four days ago
- a two-week trendline
- and its 38.2% Fibonacci retracement.
Making this all the more attractive is the fact that SCIO has been in the
midst of a potent uptrend since May 2000 and has recently seen fuel added to the
fire in the form of large surges in volume.
With all of these factors coming together at the same time, you’ll want to watch
what happens as SCIO hits that potential support level.
Until Tuesday,