Rule...on strong 5 day charts...from a lesson learned on SIEB and violated today w/NVDC...watch the 5 day chart on strong movers. The rising price bottoms on NVDC, started late Friday, show early support should have tripped just under $10, which it did. A reentry was warranted when the 5 day trend held and the price bounced back up through $10...the trend is your friend, even on multi-day price charts...
Make sure that any stop losses set on such momos are set slightly below the 5 day support level, or if you can sit on it, watch for the support to kick in and catch the return on the running price...
...soooooo, based on that, if the trend is not compromised, we should see a close over $14 tomorrow, with attendant volatility. Stop loss between $12 - 12 1/4, based on the pre-bell spread. |
