29/06/15 – GAP Inc Stock – With 7/9 of my trade setup indicators and the US futures looking very negative the potential Short trade on this stock is looking very good with 8/9 being in the green on entry. As with the majority of my Short trades on Daily time frames, I am looking to enter below the 6/4 MA Low as a conservative entry. The Wave 4 Pull Back found resistance at the Fib 0.5 retracement taken between Wave 2 and Wave 3 extremes and in effect closed the gap down during wave 3. the MACD Histogram is tending to zero and the signal lines are about to cross, which is a good sign. The Stop Sell Order set @ 38.49 with the Stop Loss @ 39.61 and the initial Take Profit limit @ 36.50, gives a risk to reward Profile above my minimum of 1:1.6. Due to the very negative futures leading up to the open of today’s session i will be holding off placing the order until 5 minutes before the open depending on pre market price action for this stock. Charts as Below for the setup of this potential Short trade on the GAP Inc Stock.
30/06/15 – GAP Inc Stock – Although the price gapped down at the start of yesterday’s session it was above my entry price. After an initial Bullish move the price turned down, crossed the 6/4 MA Low and triggered my Short Trade. The price closed near the Daily low, which is a good sign for today’s session where a consolidation of this wave 5 bearish move is looked for. Chart as below for the entry into this trade.
22/07/15 – GAP Inc Stock – A new Wave 5 Low was formed during yesterdays session and unlike the previous Wave 5 low, it wasn’t totally rejected There is an obvious resistance level at the previous pull back from that Wave 5, so I have placed my Trailing Stop ust above this @ 38.25 making this a risk free trade. I have also adjusted my Take Profit Limit Order to a Previous low @ 35.50 This allows me to manually get out the trade f I need to depending on market conditions and price action, but in reality I would be happy to take profit at the initial target level if it looks like holding up the bearish momentum. Chart as Below.
25/07/15 – GAP Inc Stock – The price has broken through the initial target level which seemed to act as resistance during Friday’s session which is a good sign. A new Wave 5 Low was formed during Friday’s session and the price closed below the $36.00 mark. I have adjusted the Trailing Stop conservatively to 37.92 which locks in 0.5% profit on my trading account balance. This Trailing Stop position is above the high of last week and importantly above the median line of the channel which has acted as resistance during this wave 5 move. I will be much more aggressive next week with my Trailing Stop adjustment once the week gets under way. As you can see by the weekly chart (2nd chart below) the light blue line @ 35.46 was a previous support level after a major Bearish correction and would be a good point to take profit with this trade as the price has not been lower than this since 2012. So my adjusted Take Profit Limit order @ 35.50 is still good. There is of course a chance the price could push through this level and in which case the next support level would be at the $30.00 mark. If the momentum and volume is strong at the beginning of next week and looks like it could push through then I may just alter the limit order to take off half my position then run the rest further down with aggressive trailing stops. Something I will have to make my mind up on very quickly on the open of Monday’s session or before if the US futures are negative. Charts as Below
29/07/15 – GAP Inc Stock – The previous support/target level has acted as resistance for the last three days but keeps being tested. A new Wave low was formed yesterday, just $0.08 from my next target level @35.50. I have adjusted my Trailing Stop to 37.35, which is just above the median line for the channel for today’s bar position and locks in 1% profit on my trading account balance. I was tempted to take profits yesterday and want to close out this trade before the end of July so will look to take profits in the next few days. Chart as below
03/08/15 – GAP Inc Stock – The price action doesn’t want to seem to take leave the target/support/resistance zone and has been around there for the last week. I have decided to take the 2% profit on my trading account balance as the momentum with BIDU has picked back up again and my Long trade on HME is reacting well to its Earnings report and moving back towards Break Even, with a view to breaking out once market conditions are positive. Chart as Below.