Post by Admin on Apr 9, 2015 19:58:17 GMT -5
A) On April 6th, UAL gapped down on heavy volume as some 8.06 million shares traded vs an Average volume of 5.9 million. This move failed to break the support at the December 17th low.
B) Another attempt was made to drive it lower on April 7th but the volume was light as some 4.8 million shares traded vs an Average volume of 5.9 million. This indicated to me that the sellers were running out of steam and that we could shortly see a change of trend.
C) On April 8th the buyers showed up early and took control. There was a failure to break the low @ 59.70 and the move above 60.50 triggered my trade and I entered.
D) My analysis indicated that we could test the resistance @ 63.00 if we got some momentum going. On the morning of April 9th UAL released their monthly Operations Report, which showed improvements, and the market reacted favorably and sent the stock up to a high of 62.91, just pennies shy of the 63.00 mark. My target of 2.40 on the April 61.00 calls was hit and I was taken out of the trade.
NOTE: It is important to note that I had no prior knowledge of the Operations Report. All i was doing was trading Volume & Price action as I always do. Very often you will find that the Volume and Price action analysis will project that a move may be coming but the actual catalyst can be any number of things.
Click The Chart To Enlarge
B) Another attempt was made to drive it lower on April 7th but the volume was light as some 4.8 million shares traded vs an Average volume of 5.9 million. This indicated to me that the sellers were running out of steam and that we could shortly see a change of trend.
C) On April 8th the buyers showed up early and took control. There was a failure to break the low @ 59.70 and the move above 60.50 triggered my trade and I entered.
D) My analysis indicated that we could test the resistance @ 63.00 if we got some momentum going. On the morning of April 9th UAL released their monthly Operations Report, which showed improvements, and the market reacted favorably and sent the stock up to a high of 62.91, just pennies shy of the 63.00 mark. My target of 2.40 on the April 61.00 calls was hit and I was taken out of the trade.
NOTE: It is important to note that I had no prior knowledge of the Operations Report. All i was doing was trading Volume & Price action as I always do. Very often you will find that the Volume and Price action analysis will project that a move may be coming but the actual catalyst can be any number of things.
Click The Chart To Enlarge
