MA - Mastercard - Tweezer Top & Buyers losing control
I got a late start today, but it was still great to be able to trade again.
Here's Mastercard which put in a tweezer top formation on the 15 minute chart (first chart). Interestingly enough, the tweezer top was right around a 50% retracement from the recent move down (~320 to last weeks low of ~276).
Here's the 3 minute chart from which I managed the trade.
My high volume failure theory continues to impress me. This is yet another example of where a stock has ran up and ran out of gas where the sellers gradually take control. For the rest of the day MA couldn't gain the strength and test the 299 area again.
Hopefully I can be more active tomorrow as I've been able to test the waters today. I had no real hiccups with the DSL connection.
smart to be careful with new connection. last thing you need is to go dark while short a $300/share stock. oofa!
Anonymous said... June 16, 2008 at 3:04 PM
Nice analysis on MA. Do you regularly use VWAP on your charts? How do you generally use it?
My DSL connection problem also has also apparently been corrected.
PDT said... June 16, 2008 at 7:17 PM
qqqball,
Yep, Thanks. Stop was in place but I still wasn't 100% sure about the connection reliability.
PDT,
I use the VWAP as a support and resistance level. I don't keep it on my 15 minute charts, but I do keep it on the 3 minute charts.
I find that the VWAP can be very useful in determining if the buyers or sellers are in control. Usually when the stock is trading above the VWAP, the buyers are in control and vice versa.
Glad to hear your DSL connection has been fixed as well.
Trader M.D. said... June 16, 2008 at 9:56 PM
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