PLAB on 5/26. This stock was on my post earnings drift list and has retested trendline, looking for bull flag to break up. It was on my list on 5/26 because PLAB saw quick reversal from 9D moving average on daily. On 30min chart, I find 9.34 being a level that the stock has failed many times.
My 9.30 alert hit at the open and it held again. I came back to it 15min later and saw it trying to do a bull flag under the 9.34 level. When it breaks out, I got in at 9.35 over opening high with stop under 9.23. The intraday target is retest of 9.6 (high from 5/18) - r/r of 1.67 with 10 as first swing target - r/r of 4.3. It surged with volume to 9.41 and stalled. I was stopped out at 9.21 the stock dropped fast back under the breakout area. The stock then bounced off the 5DMA and resumed higher to 9.6.
thoughts #1: I micromanaged the trade when its a lower vol stock. It should be a swing with stop under 8.75 (60c risk and 1.25 reward or more). I need to stay away from trading low volume stocks under 10 intraday. They are just not consistent enough to give me consistently good expected value plays. What I would do different now is... just swing this and let it prove me wrong and bull flag fails.
thoughts #2: This is still very constructive on daily and 30min timeframe. The stock tested 30c and 5DMA on Friday 5/27 and held so far. The 30min is showing a C&H pattern that can push higher to 10 and above.
- Chris
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