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Post by Admin on Apr 26, 2015 21:35:26 GMT -5
I got stopped out for a loss on my first attempt at this trade. So I knew that if i was to take another swing at it, I would have to make sure that the price action and volume were indicating that a high probability trade existed otherwise I would have to stand down. Here is how it unfolded: A: On April 21 there was an attempt to drive WMT down again but the volume was relatively low and this indicated that the sellers had just about sold all they had, for the time being, and the buyers would soon step in and tale control. This is when I started looking at it again and getting ready for a possible trade. B: On April 22nd WMT came back and tested the near term support that was established back on April 17th. The price stopped exactly at 77.55 which was the exact low that was made on April 17th and this confirmed the support. Once I saw some buying coming in I entered the trade. C: The buyers stayed in control for the two days until the price attempted to take out the 200DMA above and failed. As soon as it hit the 200 DMA some sell stops were triggered and the price retreated. This made me think that this would be followed by another wave of selling so I took off the trade for a small profit. Right now, I still have WMT on my system and i will be re-entering the trade if it sets up again.
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