Gap Fade - Morgan Stanley (Public, NYSE:MS)
Sort the
WL on % change and focus on the outliers. MS was in one of the top spots for the second day in row. This time, it got a little ahead of itself and set up an easy fade. The first chart is the 1 minute and the second is the 3 minute. The 3 min. has the
intraday pivot lines , as well as the the previous day high/lows mapped out. The picture is crystal clear with all those
tweezer tops at R2 off the open. Wait for the gap to consolidate and then short. The preliminary target was the previous day high, followed by a complete gap fill. The first target was reached easily, but the second didn't pan out. Once price failed to hold the
trendline, we sort of fell into a trading range.
After
CNQ tested and held its new
trendline on the 15 minute, it carved out an inverse H&S pattern on the 1 minute. Price made a vertical move into resistance (prelim. target). I expected that it would consolidate and notch a leg higher, but it just came crashing back down , so I had to scramble to get out.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
