PFNX : A 20% Move in a day Momentum Burst Trade Example | stockbee

3/25/2015

PFNX : A 20% Move in a day Momentum Burst Trade Example

On Monday PFNX was one of the stocks highlighted as anticipation setup from the Stockbee 50 list. Yesterday it had a breakout and went up 20% plus intraday.

This is how the stock looked when highlighted as anticipation setup.



Stock had first up leg followed by orderly consolidation. Trend intensity was above 105 indicating stock was in confirmed momentum phase. Stock was ranked in Top 25 on Stockbee 50 indicating it has best of momentum.

Stock had a 17 days sideways consolidation where volume was low compared to previous breakout phase.


I was watching the stock for over 2 weeks for entry and had alert set. Once alert triggered bought 5000 shares. In few hours stock went up 20% plus. It was time to lock in part of the gains. Closed 75% of the position for around 7000 dollar profit. Rest of the position now has profit protection stop. If stop hit it will still end up making around 9000 profit.

If you just focus on stocks in the Stockbee 50 list and especially stocks highlighted as Anticipation setups, you can find trades like this on regular basis. With just 50 stocks to focus on you can do good job of anticipation and quick entry.

Stocks with established momentum move in sharp 3 to 5 days momentum burst where they make 8 to 20% move or 5 to 50 dollar move if high priced. For swing traders that can provide a good edge and way to find explosive moves.

The stockbee 50 list is published daily and Anticipation candidates are highlighted daily for the financial benefit of Stockbee blog readers.

No comments: