A few days ago my trading clerk asked me to take a look at QIHU. It had exploded above its ATH on heavy volume. I didn't take a trade in it on Day 1 but made a note of the 36.50 pullback low after its Opening Drive. On Day 2 after a stock has broken out I like to get long if it consolidates above this level.
On Day 2 I got long a quarter position at 36.65 in the late afternoon as it was clearly being bought above the 36.50 support. I was risking about 20 cents on the position with the intention of swinging it for the next leg higher. From a measured moved perspective if it broke out from the Day 1 high a reasonable target would be around 40.60.
On Day 3 it opened flattish then drove up Read more [...]
A few days ago my trading clerk asked me to take a look at QIHU. It had exploded above its ATH on heavy volume. I didn't take a trade in it on Day 1 but made a note of the 36.50 pullback low after its Opening Drive. On Day 2 after a stock has broken out I like to get long if it consolidates above this level.
On Day 2 I got long a quarter position at 36.65 in the late afternoon as it was clearly being bought above the 36.50 support. I was risking about 20 cents on the position with the intention of swinging it for the next leg higher. From a measured moved perspective if it broke out from the Day 1 high a reasonable target would be around 40.60.
On Day 3 it opened flattish then drove up Read more [...]