Wednesday, May 25, 2011

VRML

If you have been quick in taking protfits, you probably dd pretty well with VRML the last few days. This is a long trade, but of short duration and a bit speculative. VRML tends to make big one day moves. I look for the trades that not only have potential, but are in a handsome risk:reward area. VRML is in such an area.

 Consolidation, but has had some double digit gaps up. Currently price is close to the bottom of the range and volatility is squeezing which should lead to a directional move shortly.


 The 60 min 3C chart looks very good today

 The 15 min chart is now positive leading

And despite the sell off of the opening gaps, 3C is now higher then it was when price was 10-12% higher, even though price is currently close to the bottom of the consolidation.

Just don't get greedy if you get a double digit gain. I'd book it pretty fast.

No comments: