After seeing $SGYP drop over $1 in about an hour or so today it came on my radar. I wasn't sure how to play it at first but began to monitor it. After a big drop like that, what I did notice was it started to bounce.
It started to look like a 1-2-3 setting up. I decided to go long after it broke the 2(ish area). The reason for the (ish) is because I was using the top of the candle not the wick. It started to follow thru but ran right into the 20ema. I sold for a small loss shortly after it failed to hold my stop, which I moved up after a higher low. I lost 8 cents on the trade big deal. I was going for 40 cents anyways.
About 20 minutes later, what I noticed was the line in the sand held again. So the bear flag failed to have any follow through.
As soon as the stock broke the 9ema I went long.
Here is how I played it.
This trade required a lot of patience. I have developed a lot over the past year. I pretty much just set a stop on this and kept an eye on it. My first target was 8.48 (the VWAP), I sold 1/2 here. My overall target was 8.80 (Fridays lows) I sold 1/3 more after a big green candle and the last bit I sold a cent or so from the top, which was my target.
Crazy how you can have a 20% win rate and still have a good day. But if you do the right things, that could be all that you need.
For a comple look at the tradervue trader here is the link http://www.tradervue.com/shared/trades/3067775
