The power of Suppot
Today was an exceptional day! Especially if I found the energy and the time to write this blog. Today I had a live training session with one of my mentees. This particular mentee is not new to trading. He has been trading for 4 years, however has been in a struggle and sought me out. I am honored by anyone who acknowledges their potential when being mentored by me. With only 2 weeks left of mentorship in the 10week course; this week he was able to trade with real money. Not only did he cover his cost for the mentorship program but he also covered his monetary goal for a FEW MONTHS.
OPTT- like all stocks that gap, it ended up on our gap list for this week. We had our levels charted out from Monday morning, and added the chart to list of potential momentum plays.
OPTT Daily shows– on the leg down back in 2014, $7.90s level was an area of interest, then 5/19/15 open of $7.90 and then the last swing high closing price of $7.92- which brings us to Yesterday’s closing price of $7.91!!! Pretty Awesome huh? Do you see how clear the picture is?
With a support of $7.90s and a recent close at support, it was pretty clear how today was going to form. (No way did we expect the major move, but the bounce off support was expected) Below is a 2min chart of today’s open– Do you see the test of the level? That is a test of clear Support- There was no debating, and Yes the trade was entered in at $7.97/share and 8.01/share with a stop at $7.87- — .12/share risk on average share price. (((Early birds get the worm-)))
If you noticed the first 1hr of the market, price varied in a range $10.10-$10.80s, and formed a Flag, if you know what a bullish flag looks like—This is it crystal clear.
So when Price breaks and just go crazy! with no end in site, what is the exit plan? Well that statement is for those who were in it, without a plan…. I guided my mentee through the process, with an exit of partial shares at the $10.40s mark. And the rest to hold until the longer time frame told us to exit. The Stock did halt once the break out occurred, but price remained in tact. We also had a $15.50 Weekly level (see weekly chat below) showing there was major resistance. Knowing your levels before you enter a trade helps ALOT- you will not exit a position too soon, or make a poor entry. The trade was exited once Resistance was hit, and price rejected- and $15.00 no longer held. $14.98 average on his remaining shares . The risk reward ratio of this trade goes down in the portfolio, and I am sure a trade that will be remembered for a very long time. He’s Happy! and can’t stop thanking me–and I am grateful for a wonderful opportunity to show such mastery in my charting abilities~ Thanks OPTT!!!
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