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Friday, February 19, 2016

Updated Green Day QCOM to "What do you see here ? SSO SPY"

SSO SPY and many other stocks doing the same 

SSO

  1.  PDC resistance
  2. 20 SMA resistance
  3. 200 SMA resistance
  4. Previous day congestion resistance 



Where is path of least resistance?
Build short into the move up with stop above PDH
Reading the candles near the "stop area " is crucial to recognize fake stop out.

Have happy Friday
SSO 5 min
SSO 2 min

SSO broke the 2 min low instead of moving up from the open.
I was expecting to try to fill the gap off the gate and short into the 4 resistances explained above.
However it made an  initial drop and created  double bottom then moved  up into the 4 resistances later in the day..That was no play for me .


I set on my hands and spotted QCOM moving nicely up tempting to go long, but I just could not do that after 4-5 days up
QCOM
The reason for this short was failure to hold PDH , daily over-extension,49.50 round number as resistance   

QCOM 5 min 

I was anticipating a large probable drop due to its overextended daily chart, and I  really wanted to drop down to the 200 sma and HAVE A HOME RUN . I had a great short entry at  49.16 great risk reward,  took some off with profit but left most of rest  at break even and of course NO HOME RUNI was sooo sure it will roll over to 48.75...then to 48.50... I totally ignored 48.80 daily pivot at which by just simple reading of the price action which was  taking the high of the last red candle, I should have closed the entire position, but got greedy.
So now we know that 48.80 has been tested , will trade that line on Monday 

Have a great weekend
@DaChopa

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