Posted by mamaduck on 30th of Jul 2009 at 09:57 am
Matt, MOT gapped up this morning so naturally we did not take
it... and it seems to have found support around 7.26 area... Would
you still buy it should it go to 7? Of if that happens, the chances
are it is going to fill its gap from yesterday's close? TIA
Yes when stocks gap up way above their breakpoints, we pass on
the trades. We try to buy as close to the breakpoint as
possible and don't chase gaps; unless they are breakaway gaps and
MOT is not a breakaway gap.
now as far as taking a Shot at or close to $7, yes that would be
an objective Long trade, but with a tight stop just a little below
$7. So I hope this answers your question.
MOT
Posted by mamaduck on 30th of Jul 2009 at 09:57 am
Matt, MOT gapped up this morning so naturally we did not take it... and it seems to have found support around 7.26 area... Would you still buy it should it go to 7? Of if that happens, the chances are it is going to fill its gap from yesterday's close? TIA
Yes when stocks gap up
Posted by matt on 30th of Jul 2009 at 12:00 pm
Yes when stocks gap up way above their breakpoints, we pass on the trades. We try to buy as close to the breakpoint as possible and don't chase gaps; unless they are breakaway gaps and MOT is not a breakaway gap.
now as far as taking a Shot at or close to $7, yes that would be an objective Long trade, but with a tight stop just a little below $7. So I hope this answers your question.
Title: 15' gap rule Would you
Posted by jd111 on 30th of Jul 2009 at 12:33 pm
Would you consider a breakaway if it makes new highs after the first 15'?