CHK First Price Target Hit for 17% Gain in just 2 hours

First target hit for a 17% gain in just over 2 hours. Consider booking partial or full profits and/or raising stops, depending on your trading plan. T2 remains the final target at this time although a pullback on the initial tag of the 3.70ish level is likely.

The way I traded/am trading CHK was to take a typically swing position on the original breakout over the minor downtrend line & 3.03 resistance level. Once it (quickly) became apparent that the momo (momentum) traders were jumping on board this one, I waited for a possible entry for a daytrade sized position (typically 3-5x what I'd take home overnight in a swing trade position as I'll be out before the close, hence, no risk of getting caught on the wrong side of a gap).

Once it was clear that a bear flag continuation pattern was forming on the 3-minute intraday chart (the first chart below, which was posted in the trading room at the time), I waited for an upside break of the pennant in which to establish a daytrade position. As mentioned in the second update on that flag (also posted in the trading room), I wasn't going to hold out for the measured target of the bullish pennant pattern because I had a key resistance level on the daily chart at 3.70. Daily levels & chart patterns ALWAYS supercede intraday levels & patterns in my book. Hence, I booked full profits on the day trade position at my first target, expecting CHK to hit the 3.70 level before reversing and shorted there for a quick pullback trade (which I'm about to close... correction, just closed at 3.35). Note: The pullback short trade was a reversal of the daytrade. The swingtrade position taken earlier will be taken home  & left to hold out for T2 at this time unless stopped out or closed early first.

Mar 2, 2016 3:18pm|Categories: Completed Trades - Long|Tags: |1 Comment

One Comment

  1. Lisa Trading March 2, 2016 3:29 pm at 3:29 pm

    Wow, bravo! I’ve got so much to learn from you, Randy. So glad my friend recommended this site to me. 🙂


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