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Bullish consolidation continued breakout
Bullish consolidation continued breakout at the high range of a Bullish Wide Range Bar (+WRB) out of an oversold buy setup. On Jan. 2nd, NTES closed with a +WRB out of an oversold buy setup on Major Support (MS). Ever since it has been moving up in a bullish manner, with shallow retracements. Because of the bullish consolidation near the prior December high, it has been effectively absorbing that supply; and, because of the prior fluid move down, there is not much supply to halt a move up until the area shown. Additionally, although not shown, the hourly chart closed with a +WRB out of a bullish base, also suggesting a new momentum move.
chart courtesy of Mastertrader.com
A bulling consolidation following a +WRB from a base, which has been absorbing prior supply, provides for a very powerful continuation.
Buy above previous day's high ($46.50), or the 30-Min. high, with a protective stop under previous day's low ($44.28).
A move of $5.00 to $15.00.
MEDIUM TO HIGH RISK
NTES triggered entry, and then trail stopped out for a gain.
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