Out long ZNGA position is still looking pretty good, it's bumping in to resistance right now and if the market is going to pullback a bit (even though ZNGA and FB tend to trade on their own), it might be just enough pressure to cause ZNGA to consolidate.
Both suggested trailing stops from this morning held so it's up to you how you want to deal with ZNGA, I chose close 1/2 the position and re-enter on a pullback.
You might want to watch for a closing candle that forms a star or Doji (although I believe the stops suggested would take you out before that. With the volume already higher today, a reversal candlestick has strong probabilities for at least a short term reversal. I figure ZNGA would have to close anywhere from about $2.56 to $2.59 for that scenario to become high probability.
Resistance at $2.66 from a hammer, these candlestick resistance/support areas I have found to be pretty strong, stronger than typical trendline resistance.
The 60 min stop mentioned this morning, there was nothing even close to a close under either average.
On the 30 min there's 1 candle at the red arrow that is right on the line as far as where it closed, probably not enough to cause me a stop out, but pretty darn close; every other bar closed above the averages.
Longer term ZNGA still looks fantastic.
No comments:
Post a Comment