Goldman put in Bearish a Doji-Star Hangman on Thursday, just below Gap Resistance. Friday morning, it gapped down at the open, but as has been Goldman's wont off the November low, it refused to die. It put in a low early in the session, then settled into a nice little Symmetrical Triangle pattern, similar to Thursday's pattern.
Just as I did on Thursday, I got long Goldman after Data Point #4 was established, but UNLIKE Thursday, when Goldman broke out and rallied close to the 92.60 target IN PLAY, I took the money. Sold it at 92.35 for a $1,000+ gain with a plan to re-enter on a selloff.
I got the selloff and re-entered long, but after an hour of boring price action in a market that looked weak, I threw it in for a $200 gain. That worked out fine. Athough I wouldn't have been stopped out for a loss, I essentially got my intended gain on the pattern play (within five cents), which was my plan.
The 92.60 target did end up getting MADE, by the way. High on the day was 93.38.
I was hoping for a rally in Goldman that would help to take Morgan back to it's opening gap so that I could short Morgan at the broken neckline of its H&S Top, but I didn't get the rally in Morgan. It remained weak throughout the session.
One of the reasons, technically, that I think Goldman has acted so strong lately is the fact the in the Hourly Chart, it "looked like" Goldman was putting in a H&S Top. The volume didn't have the right look, but the pattern did. When the "theoretical" Right Shoulder got taken out to the upside, Bears who had jumped the gun were in trouble. As we can see, the recent trading has been above that 87.77high, with the exception of the two nominal breaks, which now look to be the neckline of a "possible" H&S pattern again!
The volume in this "possible" H&S Top DOES have the right look to it. Highest in the Left Shoulder ... next highest in the Head (little volume spike on the move down to the neckline from The Head), then weakest in the Right Shoulder, indicating a diminution of buying interest.
Classically, the width of this "possible" Right Shoulder should be narrower than the Left Shoulder, but I've seen plenty of these patterns have wider Right Shoulders, and work out fine. Case in point: the last of the Right Shoulders in the TRIPLE H&S Top in Goldman, back in January, was wider than the Left Shoulder and the downside target got MADE and exceeded by quite a bit, so we won't worry too much about that. The more important thing, in my view, is whether or not the neckline gets broken to the downside. If Goldman is called Gap Down in the 87.30- 87.50 neckline area, that would solve that "width" problem, wouldn't it? LOL.
If the neckline of this pattern gets broken, that would put roughly 80.95 IN PLAY, which still would be above lateral support in the daily chart above, so Goldman still wouldn't die at that price. LOL.
We need to be aware, also in the daily chart, that the overhead gap hasn't been fillied, so absent horrible news over the weekend, if the market rallies, Goldman could rally some more and make a bid for that gap. Also, let's remember that in the Hourly chart, Goldman pulled a surprise to the UPSIDE, taking out the 87.77 high of the "theoretical" Right Shoulder, so it "ain't a done deal."
I forgot to capture the Real-Time execution page at Scottrade, and it's gone, so here's the Order page with the Reference numbers crossed out for my privacy. I've been posting these trades with my rationale for making them for the past few days for learning purposes and to encourage anyone who has read them to continue to learn, and to have a plan for trading, certainly not as a brag. They aren't huge amounts, anyway. This one was a gain of $1,200+. I just try to hit singles, and try to keep banging it out ;)
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