Trade
3:40pm short 20 JPM @ $129.7
3:52pm cover 20 JPM @ $129.21
+$9.8
JPM opened trading on 7th with a spike down, then traded in a range all day until downward trend resumed near close
Setup
- On 5 min chart the day’s trading pattern is evident. Spike + 3 small down pushes, followed by two up legs, completed by 2 down legs
- I bought the second closing down leg, once it broke out of the trading range, having anticipated a downward trend resumption
- The 1 min chart shows a small pullback on the 2nd downward leg where it formed a double-bottom with 1st leg.
Outcome
The price climbed back up on second leg of double bottom pullback, as seen on 1 min chart, and then fell rapidly into trading close.
Longer term I had a target of $126 for JPM based on spike and channel on daily chart. Soon time to buy!