Dummy Gapper Trade of the Day - athenahealth, Inc (Public, NASDAQ:ATHN)
ATHN gapped up on earnings and carved out an inverted hammer. The next two bars were inside on declining volume. The second inside bar was a bullish green hammer so I took a dummy long above the second bar high. The BO bar closed above the ORH. After that we consolidated below and above R2 before momentum finally kicked in. I took a partial at the 50% Fibonacci extension of the previous day low to the ORH and closed at 75% ( mismanaged the last exit - should have been faster on that WRB).
ATHN is a recent IPO. As you can see from the daily chart below, it tested its all time swing high today. If it breaks out of this base, I think we could see more volume come into the stock. I'm adding it my WL.
Related Stories
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.
