Thesis: Better than expected earnings (catalyst) + gap 13.89% + RVOL about 350-400 in PM and 80+ on open. Small consolidation breakout on open with passing 1st level of resistance based on premarket action and overcoming of premarket high made me want to open long.
Stop: Placed my stop-loss below 09:35 candle.
Entry: I have entered position once the 6th bar broke above the premarket high and closed.
Targets: Was hoping to see 1to3 RR, but already at my entry I have realised that I could enter 2 min earlier. For this reason I had to adjust my expectations based on price action of a stock that I was not planning to trade at all.
Breakeven point: was set after 2 minutes being in the trade. This is a standard practice I use for opening drive plays.
Profit taking: exited due to adjusting trailing stop loss and acceleration to 130 which played as a resistance forced to get out with this move2move setup.
Comments: I liked the ability of admitting mistake and adjusting my expectations.
Lessons: I have to watch more premarket action and don't always wait for the premarket level to be broken. Prior price action on open + premarket resistance levels would allow me to scale my position size. Definitely one of the greatest trades to study!
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2023-11-15 09:36:02 | TGT | buy | $128.200 | long |
2023-11-15 09:44:38 | TGT | sell | $129.440 | 0 |
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