Cart (0)
business newsTrading Lesson: F5 Breaks Out of Bull Flag
FFIV left a solid setup on its short term chart this morning, once the gap filled it was off to the races.
PRINT
 |
|
Last night I told subscribers to keep F5 (FFIV) on the radar. (Subscription required to access link).
The purpose of this update isn't to chase it if you didn’t catch it, it's a trading lesson.
F5 is a strongly trending stock in a bull flag that we used the day before in the nightly report as a day trade setup. It spiked up and rolled red on the heels of a nice 1 2 3 Pullback buy setup. However, often the second mouse gets the cheese.
This morning F5 tested yesterday’s lows and the lows of two days ago, offering a good risk-to-reward entry with a tight stop.
When F5 stabbed back through its 50 period on the 10-minute chart and offset Gapfill from this morning, it was going higher and offered another continuation trade.
Yet a third continuation trade evolved when F5 traded over the short-term triple tops on the 10-minute around 87.25ish.
In a market that acts like its driven by Tommy, the Pinball Wizard, this is a game of singles and doubles.
The Golf Trade (the leave-the-screen-and-go-to-the-course trade) will come when Mr. Market is done duking it out and the bulls and bears alike quit, throwing up their hands crying, “No Mas”.
See 10-minute F5 with 50 pma for last three days below.
Click to enlarge
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
