TSO was a gapper from the Briefing.com list. After a 38% Fibonacci retracement of the ORH to the morning swing low, TSO stalled. Short after price reverses and takes out 5 period ema. These types of setups usually move slowly until the swing low is taken out, at which point, it should accelerate as TSO did. I covered at the 50% Fib. extension of the previous day high to the ORL.

The gapper retracement setup should retrace approx. 38% which is a normal retracement on declining volume. After the swing low is taken out, look for volume to accelerate.

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This entry was posted on Thursday, December 6th, 2007 at 7:15 pm and is filed under Wall St Trading Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.