 |
| WLL daily chart: Stock closed above 200 day. That's new. |
 |
| Gator's Chart of the Day: WLL 5 minute |
I traded this stock on Wednesday and it worked out very well. My original position was started on Tuesday as the stock looked ready to make a move to the upside from a volatility squeeze. (Volume had been very good and it closed very near the high of the day.) I was watching from the open and when I saw the move above R1 I added (9:50) to the position. When it cleared R2 I added (9:54) again. When it stopped going up I got a little nervous and when it printed a second red candle I sold (10:32) the entire position.
I use the daily R and S levels to help me time my entries, adds and exits. I need them as a crutch for my trading. Maybe I'll get good enough someday to toss my crutches but like Harry Callahan said, "A man's gotta know his limitations."
The 5 minute chart shows that R1 and R2 defined the highs and lows for the remainder of the session. I still like stock and now that it has closed above the 200 day simple moving average I will use that as a reference for stops. I'll reenter on a move above the new R1 (53.97 for 2/9) or a pullback to test the breakout and buy the bounce.