BCRX - 113005; 15-minute chart at 2005-12-04 19:51:27
I have a function to attend, but wanted to post a chart before I left. This one is a candidate for "trade of the week".
1.) What did I see? A gap up and somewhat strong first bar. The second bar is a narrow range, inside bar and closes above the 50% mark of the wider-range first bar. In the past, I have discussed a pattern with multiple upper tails/wicks - as BCRX has in the first two candles. This can be a bearish sign, but if price instead rallies and takes out the high there is a good probability of a rally. 2.) What is the entry? A break of the second bar high. 3.) What is the exit? 1/2 closed after $1 gain. The other 1/2 was closed at the Fibonacci extension of the previous day's low to the opening range high. I left some money on the table as BCRX continued to rally, but you never go broke taking a profit!
Notes - the total move in this trade was just under 8%. Not bad for two hours work!
