Masterful play in GILD

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I woke up this morning with two stocks on my earnings watch which were DIS and GILD. DIS scored as a Tier III gap but GILD was a Tier II and if the market was gaping up, which it was not, it would have been a Tier I gap, the best! Well, price action sold off hard at the opening in GILD confirming that sentiment felt it was a Tier I gap which allows for an immediate entry and those who were brave and entered were rewarded handsomely. I waited until the first PSS which did not have enough risk to reward for me, so I passed on the trade. Good thing, price action rolled back upward and continued higher. Soon a small little Doji bar appeared near the 40/60% Fib retracement area. I had a nice 3-1 risk back down to the low and this setup was pretty much everything that I was looking for so as it triggered I was in short at 97.31. It took about 45 minutes of SOH (Setting on Hands) but price finally made it down to my 3 “R” (Risk) unit target where I covered all at $96.14. Believe me, it’s hard just to set there and watch as I thought many of times in this play, that I was going to take a full stop out. Hurray, my patience was rewarded this morning handsomely!
GILD 02042014

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3 Responses to Masterful play in GILD

  1. DC Trader says:

    What a great trade, precise analysis and impressive patience! I’m proud of you.

  2. S-Trader says:

    Boom! Hey, really appreciate the way you clearly explain everything for folks like me trying to learn. I like the way you not only explain the technical side, but also what was going thru your mind at the time — it really helps gives a complete picture of the trade, what you did and why.

    Congrats on a beaut trade, and also for having the patience and discipline to see it through.

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