Here is what the daily looked like:
As you can see the stock had been selling off recently in a nice and steady downtrend. On March 16th 2015 it finally came to support on the daily chart. When I noticed where it was located on the daily chart, I started to pay close attention to the intraday chart.
Here is what the intrday chart looked like that day.
Upon looking at this chart I noticed a few things.
1) Stock found support right on cue from this level on the daily chart.
2) We now have a higher low.
This appeared to be a bottoming formation in my eyes so I took a position at 47.12 with a stop right under the recent low #2.
As we can see 3) the stock broke out of this bottoming formation late day with a significant volume increase the last 10 minutes of the trading day. I sold 1/2 for a 55 cent profit at resistance on the intraday chart and held the rest for a swing trade for a continuation from support.
Heres what the stock did over the next few days
The stock ran over the next few days right into the next area of resistance. This is where I decided to sell the rest of my position.
That was a simple trade that netted $2.50 overall while only risking 20 some cents. The exact type of trade we want with a nice risk reward.
hehe
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