Thursday, September 21, 2006

in search of a good swing

This is one of the two trades that I made today. Not really sure if this was a good trade or a bad trade. On the one hand, Prior resistance @12.1 has now turned into a support level, and GIGM never breached this support level all day. On the other hand, that selloff in the early afternoon which broke the mini-trendline is cause for concern. GIGM closed today a couple cents below my entry. If I was daytrading this stock it would have been a good scalp, bail on the 9th candle. However, I was looking for a swing trade today. I think the better trade was to enter on the afternoon test of the new support level (and prior resistance) @12.1. Unfortunately, the morning doesn't know what the afternoon is going to do.

In any case, I will be monitoring the 12.1 level closely and will be bailing on any breach of that support level.

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