Trying to profit on the falling knives (oversold stocks & huge pullbacks).
Monday, November 26, 2012
Trade of the day, RIMM!!!
I knew between 12 and 12.25 was a huge resistance. Picture to the left shows why.
RIMM this morning was a no-brainer to short it right at the open when I saw it gap up in the morning. I shorted 1000 shares at 12.05, I knew between 12 and 12.25 was a huge resistance. After I got into the trade, I placed my stop at 12.21. It formed a long legged doji candlestick pattern on my 5-minute bar chart about an hour later, and then I just decided to cover it 11.63 for a .42 point gain.
If you want to see what I might be trading during market hours and interact with me during my trading days, just follow me on stocktwits or twitter @tradermike9.