My first play of the day came in COST which I found on my gap list as a Tier II gap. I also had RIG on my list as well but when you looked to the left on the chart of RIG, there was no support anywhere near where price was gaping to. With COST you could see overlapping bars to the left and I knew that once a buy triggered, COST would most likely hold the area. Here are the 15 minute charts for comparison…
RIG 15 minute
I felt that a long setup in RIG would most likely fail because of a lack of support and price was already selling off. Now here is COST…
COST 15 minute
Looking left you can easily see overlapping bars to the left which will act as a support area on any setup and as you can see by the bottoming tail left behind as the first 15 minute bar took off like a rocket. I took the first 1 minute buy with a full share size @113.24 and price, in a flurry, hit my first target @ 113.70 and sold 1/3rd of my shares. With the help of the market, COST continued to power up to my 2nd target where again I sold 1/3rd of my shares @ 114.29. It took a little while but as we were heading into lunch time on Wall Street my 3rd and final target was hit @ 114.68, wow! What a play, when everything is working it’s like shooting fish in a barrel…
COST 05082014
Well if you want to see what happen in RIG today, here is the chart, I know of many Traders were stopped out on this long play today…
