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Climactic Buy Setup on Major Support (#1)
Climactic Buy Setup (CBS) on Major Support (MS). JILL made a new high for the year last week before its dramatic sell off. It is down five trading days in a row and is far from its 20MA. Previous day it gapped down, closing at the low of a bearish wide range bar. The climactic volume, however, suggest that the last of the bears are getting shaken out. It is testing MS where it broke out in May.
chart courtesy of Mastertrader.com
A CBS on climactic volume in an area of MS often provide a tradable bounce.
Buy over the high made in the first 30-min of trading, with a stop under the 30-min low.
$1.00 to $2.25 move.
JILL did not meet the entry criteria.
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