Jun 29, 2007

AZZ - Long

Although I thought today presented better opportunities, I still found myself drawn to a lower volume stock - AZZ - that presented more of a typical 'OONR7' entry on the :10 timeframe:

  • Placed fib. lines from first bar low to second bar high
  • Price retraced and touched the 38% level
  • Fifth bar formed a nice hammer
  • Entered on break of 5th bar high (spread was pretty wide at the time but I still ended up getting filled at the price I wanted. With low volume, I always use limit orders)
  • Exited during the 11:50 bar after noticing resistance at the midway point to the fib. ext.

I found AZZ by looking at my scan of top % gainers in prophet.net as I did yesterday with PENX. I don't particularly like low volume stocks, but I'll take a good setup on low volume over a not so good setup on a lot of volume. But... I still like the first :15 of volume to be greater than 100k.

4 comments:

Anonymous said...

same feeling here, looks like a lot of free money out there today, just couldn't get it... Anyway, I traded BOBJ, short on 11th bar, 15 minutes chart, 10th bar break the ORL, so I short on 11th.. and closed when it close above 5EMA on 5 minutes chart.
Only problem with short is, it's not able to borrow enough shares so I have to cut to half of my normal size.. Guess something wrong with my broker.
-DT

Anonymous said...

nice trade. enjoy vacation, i may be right behind you!

jason said...

This is my kind of setup! However, I'll have to live vicariously through you, as I was just too swamped to trade today. Great job and beautiful exit. Have a great and safe trip my friend...and enjoy the sunshine.

Flatwallet said...

Oonr7,

How's life? Hope your trip is going well. Thanks for the word of encouragement. Yes, you are right, having the right watch list is the most critical step. This seems like the hardest thing for me to create consistently. I need to put some time into this. Anyway, let me know if you have some tips.