Jan 13 • 💬 General
Trade Review: WBA Earnings on 1/10
This week's trade review will be VERY helpful on how to best trade something that is above most of the intraday resistance levels such as pivot points, etc.
Let's dive in!
Premarket (picture 1):
As we discussed, WBA received positive earnings and upped their guidance for the year. Because the stock was so beaten down people flooded into it sending higher. In fact, so high that it was above all of the pivot points and potential intraday resistances before the market even opened. For the sake of record keeping, we'll update the spreadsheet using just a resistance level since I haven't taught on this yet.
When there are no resistance levels left on the intraday chart, where do you find profit taking zones? Zoom out. Probably the easiest thing to do is look at the daily chart and mark the next two daily closes above the current trading level (picture 2). Those are great profit taking areas.
The trade:
15 minutes after open, we got our high and low. The high was our setup entry and the low was our stop loss. As you can see, the downside risk was B level so we would use 50% of our normal position size. Entry happens on the second candle of the day.
After giving it room to breathe, we hit our first profit target, $11.87, about 90 minutes later. Price topped out shortly without getting stopped and we closed out our position by the end of the day. (Picture 3).
Profit on a perfect execution:
Entry at 11.42
1/3 of shares sold at 11.87 for 3.94%
2/3 of shares sold at close at 11.75 for 2.88%
Total Profit: 3.23%
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Trade Review: WBA Earnings on 1/10
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