Closed long on BAS @7.55 (+22.4%)

2015년 2월 10일

1 - Downswing on increasing volume and tight closes: the accumulation phase started here
2 - Decreasing volume on down bars: sellers are exhausted
3 - Effort to rise on ultra high volume: market doesn't like this kind of candles because they could hide sellers, so the stock pauses to test supply
4/5 - Two tests of supply but the following candles failed to confirm them: still weakness
6 - Narrow bar on ultra high volume and the next candle closes higher: stopping volume, more accumulation
7/8 - Confirmed tests of supply
9 - Lack of demand at these prices
10 - Another confirmed test: good long entry
11 - No supply test after an effort to rise candle. This test is confirmed by next candle's closure although volume is low
12 - A narrow spread candle on high volume: this candle could contain some selling
13 - Long spread candle on average volume that closes in its middle: this candle could contain some selling too

Since company's earnings for Q4 2014 will be released on February 19th, I was looking for an exit after the strong really to avoid holding the stock into the news. Candle 12 was a first sign of weakness and I thought it was the right time to close my long. On Monday, the stock opened strongly and I decided to let it run but during the middle of the session it started retracing so I decided to close it.