Day Trade: Oil Service HOLDRs (ETF) (Public, AMEX:OIH)
Above is 15 min chart of OIH. Entered Nov 190 Call options just before 12pm. Stop loss indicated by red dotted line and target in blue dotted line. Stop loss was adjusted to just below the next 15min bar after it was formed.
Reason for entry:
-Support around $192 region
-Gap (up) is closed
-The 11.00am hammer with heavier volume has shaken out the stops. Next two bars see declining selling pressure
-Breakout of the down trend line
The flip side to this trade is a string of MAs overhead. But the reasons for entering were quite compelling and I also liked what I saw on the 5 min chart. But most importantly, the risk was manageable. Target was hit later in the afternoon.
Related Post: Anatomy of OIH Intraday
I believe I have talked about OIH a few times in my blog. You can also type OIH in google to search "This Site" for more of my posts on OIH.