Jan 3, 2022 – Best trade

Best Trade

Buy FB (Facebook) on a limit price in pre-market at @ $338. Sell one hour into market @ $340.33. Share #: 50. Profit: $116

Setup

Gap up spike followed by channel to ~ $39.5. Expected pull back to 20 ema (exponential moving average) at around $38.5. Put limit order in for 50 shares at $38 as FB often has a steep decline (below ema) in minutes before market opens
60 minute chart was showing the completion of a two leg downward correction, with a reversal bar bounce off of the closing price from Dec 31 (white dotted line). Expecting a resumption of upward price trend, or at minimum, a ‘correction of the correction’

Outcome

See the drop in price at the end of the premarket period – that triggered the $338 limit order purchase. First market hour created a wedge (three pushes up), and it was just after the 3rd push peak that I sold. FB subsequently sold off for a couple of hours. $2:33 gain with 50 shares!

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