October 18th 2007
GSOL Trading Idea
Yesterday I wrote about stocks rolling over. I think there’s still a question mark as to whether this uptrend will continue, but for the time being we’re still in an uptrend and that means I’m trading longs.
GSOL present a typical momentum play. The stock has moved up very fast, very quickly. Now we’re seeing consolidation which gives a lower risk setup. We’re looking at the third consolidation in this move. In my experience, the more consolidation and moves beyond three, without correction to the low of the previous low, the less reliable the move becomes. So, the fourth and fifth move would be less likely to continue. How’s that for a trading rule!
Let’s take a look:
Don’t know what GSOL does. Don’t really care. I like them over 30.00. Stops will be tight so I like the risk/return.
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5 Comments »
shohel on 18 Oct 2007 at 4:26 am #
do u think this forming a cup and handle. if it will go down atleast a week.
Bubs on 18 Oct 2007 at 5:53 am #
I also like GSOL for a daytrade, either a run toward resistance at 30 or a breakout play over 30.
thewild1 on 18 Oct 2007 at 2:14 pm #
it has a good global audience.. i like the buy at 30 also
Jonathan on 18 Oct 2007 at 6:02 pm #
Gapped over my entry today. Played the 5 minute triangle and got some over 32. We’ll see what happens.
stockhunter on 18 Oct 2007 at 10:31 pm #
It gapped and you took it and let’s hope it is going to do fine, but on the con side (hindsight) -
Over extended and far away from the smaller MA (or ema).
Interacting with top BB.
Big red vol on the last consolidation day.
Good luck with the trade!