NEM began yesterday to the downside, along with the general market, and headed toward 38.53 - 38.71 horizontal support (sorry, I mistyped it as 38.55).
It took out the prior day's low of 39.51, dropped to 39.06, then rallied with the market. Shortly after noon, NEM had put in a Symmetrical Triangle, with the highs at 39.53 and 39.52, right at the prior day's low. Given that the general market was looking so strong, I decided to cover my short when the triangle got taken out to the upside. I didn't like seeing it (and the market) showing strength like that.
After the Symmetrical Triangle breakout, NEM put on a pretty good rally.
Gain: $1,400
2 comments:
Melf, Nice trade on NEM. Why did you wait until 8/25 for your entry? Wasn't the failed retest on 8/24? I see that the report was at 9:40am, was that when you entered the order or did you have a specific target price for your short entry?
Good Morning,
Thanks. I didn't look at the chart until the wee-ee hours of the the 25th. On the 24th, NEM had failed the retest of the broken Ascending Triangle and closed at 39.94, so I figured that I missed the trade.
When it gapped up on the 25th, to 40.56, that gave me a chance at it. I put in an order just after the open to short it at 40.96, just under the "round" 41.00. I could just as easily have picked 40.94 ... 40.95 ... 40.97. It was a case of "pick a number" under 41.00.
NEM printed 40.96 at 9:40AM, so that's when my order got filled.
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