Christmas time trading can be very tricky but today I was able to locate this earnings gap play in ORCL. The gap play really did not score because the market was also gapping up this morning but it still looked pretty good. I just needed some way of knowing when to get in. Most of the time I want to see what the Bears can do first before I get in long. Well after the first minute of trading price action formed a bottoming tail on the 1 minute chart which is very bullish, but I still wanted to see what the bears could do. The very next bar the Bears sold the position hard and again in minute #3. Both red bars retraced about 80% of the bottoming tail bar but did not take out the low. Finally in minute 4, price took out the high of the last two red bars, this was my entry trigger and I was in @ 43.94. Price moved up rather painlessly from there. I took profits at 44.22 and later at 44.67 but I left some shares on for my longer target at $45.00 which I found by drawing my Fibs on the 60 minute chart. Soon thereafter, price came in a bit and allowed me to add and reduce my stop at 44.74. With new shares, I rode the play up to my ultimate target of $45.00 where I offered out my shares at 44.97 ( close enough!). Wow, what a play! As I’ve made it a must with all of my trades, I still had some shares left just in case price continued upward, but soon I trailed out of my play in ORCL at my last add and reduce area @ 44.55… Merry Christmas everyone!
