$DPW/2500: $275.25/PROFIT

November 30, 2017

 

This stock will gap lower, at the bottom of yesterdays lower shadow.  I expect this stock to drop between 1.15 - 1.30, where I would buy and then expect a reversal.  I expect this stock to rise between 1.60 - 2.00 where I would sell between 1.75 - 1.90 for solid gains.  STOP LOSS IS 13 EMA on 3/6 month chart and 

 

If this stock spikes, I will wait for a reversal and buy on the dip implanting the same strategy.

 

Currently forming a triangle on 1 minute chart, f pattern.  Now it has consolidated between 1.44 and 1.45 currently 947am.  

 

 

This stock broke out past 1.50 and back down to 1.45 where I bought in at 1.4999, it spiked up to 1.63, then reversed down to 1.54 and climbed back up and tested the HOD/broke out past 1.63 to 1.64.  It was forming an ascending triangle, but ended up being a fake out breakout.  The stock just dropped down to 1.54 to the 13EMA, and is starting to climb a bit.  There is resistance from yesterdays low at 1.63, that's why it's having trouble breaking through.  It looks to be forming a head and shoulders pattern now.  The bulls did not let this intraday head and shoulders pattern drop, instead it formed a descending triangle, and went into consolidation.  I am expecting this stock to drop out of consolidation and close around the 13EMA of 1.10 at the end of the day.

 

The momentum indicator on the 3/6 month chart shows divergence of this stock continuing to drop.  I believe it is a matter of time before it does.  Too many bearish signs to hold on to or buy into a position.  Intraday MACD, RSI, MOM all bearish in this consolidation, and here comes the drop 10:22AM.  Bulls trying really hard to go against the grain but I feel it is not in their favor.  This would be a great time to borrow for a short.

 

I let this winner run, I watched it reverse and I sold into the second spike at 1.61 because it was showing weak momentum.  That instinct of weak momentum to sell was a smart one because the next breakout ended up being a fakeout.  It consolidated and is slowly starting to drop.  Today was a good trade.

 

 

 

 

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TOP DOWN LIST

DO NOT DELETE

 

-RISK/REWARD: FORGOT TO CALCULATE, DO NOT FORGET AGAIN.

 

-Float: 8.5M

 

-Volume: >13M

 (2% OF VOLUME RULE!)

 

-Short squeeze momentum number (1-5, 5-10,10+) w/ catalyst: .23

 

-Over Head Resistance?: 1.63/2.00

 

-HYPE?: Typical PR’s, possibly a little momentum for bulls

 

-EARNINGS?: No

 

-PATTERN?: More than likely consolidation between 1.40 and 2.00.

 

-GAP?: Slight gap down at open

 

-EMA STACK: 3/6 month (13, 39, 200)

 

-MACD Histogram and Signal Lines: Signal lines bullish, histogram bullish at .12166

 

-MOM: Bullish above neutral line at .9925

 

-RSI: Currently in neutral on verge of crossing 70 into “over sold” territory

 

-D.O.W.?: Wednesday close was bearish closing below the open for Thursday possibly being bearish as well

 

-Candle closing strong? Only upside to daily candle closing is longer wick for bulls putting in a small fight second half of the day, but the bears still won

 

THE MARKET IS ALWAYS CHANGING, AND SO SHOULD YOU.

 

 

PLAN THE TRADE, AND TRADE THE PLAN - THEREFORE TRADE TO TRADE WELL, NOT TO MAKE MONEY.