I had $VCEL on watchlist from a few days ago, after find on StockHorizon. I Looked at the 7 day chart, and it clearly shows where major resistance is at 5.10 area. (See Chart 1) After it broke above the resistance area, I put limit order in at 5.05(few cents above breakout to confirm bounce) and a nice tight stop at 4.93(Few cents under last support at 4.95). Risk is 10 cents with reward of .30 or more with confirm breakout.
My confirmation was it bounced twice off 5.10 area. Limit order at the dip 5.05. (See Chart2)
Where did I get the goal of .30? I looked at the last major resistance which was 3 years at 5.30 area, Once it broke 5.30 I sold at market it was filled at 5.39 nearly the top! (See Chart 3)
In conclusion, I play chart only, I don’t care what the news is or was, that is just a bonus. I will continue to watch because it could spike if it gets above 5.80 range. Weekly chart showing a nice uptrend.
Any questions feel free to ask.
Potential short opportunity soon?
I see you made money but not sire if the thought process makes sense. Resistance was 5.10 so your figuring it will become new support (that makes sense). But then you buy when after it breaks that support at all the way to 5.03 (buying under support - here's where its gets sketchy). Then you say your confirmation is when it when it bounced twice at the 5.10 area, after you entered under that support area. If you lower your time frame enough there are bounces everywhere. And if you identify 5.
...And if you identify 5.10 as support and buy under it, is your entry at 5.05 not entry at an arbitrary bounce that so happened to also be a near term bottom? Shouldn't you be buying after support prove to actually be support with a stop under that area?
I know very very late, but the 5.10 was double top, usually does not breakout the first few times. If you notice, it bounces off the 5.00 area from waay back. Thats how I knew it was support there.
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