SGR - Shaw Group - Flag
SGR was on my watch list from Friday. It was a HCPG pick through 50, yet didn't really offer any type of setup, as it cracked through that number late in the day on an extended move. SGR had the chance to move lower if it could stay below that 50.00 level.
Looking at the daily chart you'll notice there is very little in the form of support or resistance between the 45 and 50 levels.
SGR dropped to the 49 area early in the trading session, and began to form a base/flag right below its OR(opening range) low.
My entry was a break below 49.00 and the stop was placed just above the flag/base area. My target was just above the the 38% fib extension from Friday's high to this morning's OR low. You'll notice the S1 pivot point (yellow beaded line) is right below the entry point and the S2 pivot point (pink beaded line) is right above the exit point.
While the S1 pivot point was reason for concern, SGR had bounced very little while basing right above it.
Keep an eye on SGR at 45. A break through that on high volume should result in some more downside. It will probably need to rest a bit though, as it is down nearly 15% from last Tuesday's high.
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