Apr 3 Long Idea OREX for next week

OREX had initial huge run on March 3rd, stayed above 7.60 for only 2 days, then traded below 7.60 and had hard time closing above 7.60. It tried to close on several occasions above 7.60 but it failed until March 30th after which had  consecutive  four closings above 7.60. I will be watching it next week for long trade , mostly day trade. It is setting up for swing long, because of which I like it even better for a day trade. I will look for increased volume. How do I know the volume is increased ? It is pretty simple: compare the opening volume on Monday with the opening volume from the previous days.  It can be the first 1 min, 2 min 3 min or 5 min , play with the time frames, draw some lines over the volume bars from the previous days. The price action: I need to see higher lows above 7.60 , and if  I decide to enter long the  7.60 will be my risk. 

Interesting to note :  Very similar set up I had on the long trade CLF back Feb 18  

CLF the long set up explained here . 

The major difference is: CLF was a stock in major daily weekly down trend, while OREX has huge momentum on the upside. I believe the odds for OREX to be a successful long , are much much better the any other stock that is in major down trend. I had CLF break even long BTW although I could have taken great profit with Risk vs Reward 1:4 ,  

CLF break even explained here

                                                   OREX the long set up

Note for brand new traders:

The news and the trend are all in favor for going long. However everything may change in a blink of an eye. Never be 100% sure. Only be 100% sure that trade will go wrong and be 100% sure what will you do if that happens.

Scenario No.1) next week OREX trades below 7.60. I would not touch it for long.

Scenario No.2) gaps up much above 7.60, I will not chase it. I will wait for reasonable pull back towards the 7.60 and will look for possible higher lows on 1min 3min 5min intra day chart. The ideas is to identify a low risk entry with very defined downside against the 7.60 or above . It may be defined with higher lows for example 7.80 7.90 so the long entry will have for example stop loss st below 7.80 ( these are highpathetical examples, I have no idea how will OREX trade next week). But I do have a plan, a vision on how will I execute and how will I define my risk BEFORE i enter the trade. There are many stocks for next week that have almost the identical set up. Im just using OREX for example so a new teader who may be excited buyng something, can learn on how not to lose much if things go wrong. OREX may give a great risk reward, but if I am long and if something happens and OREX starts dropping I would not want to be in it and take bigger then planned loss. I will be in it to win it, or admit I'm wrong and if I can't nail I will bail.

I was in similar trade once , went long , the great news were just poping , stock kept dropping I kept adding to my loser, till i blew an antire account. It always worked till that ONE TRADE.