One of the most gratifying things about trading off support and resistance is that you can sometimes get a 2 for 1 deal in that you trade long on a break-out through resistance and then buy the pull-back to the same spot which now has turned to support.
Here are two trades from this morning:
As you can see GOOG had a small break-out spot at 600 from December. We put that in the newsletter last night (and posted this morning on our Twitter/StockTwit Account)
that we were looking to buy 600.
The stock came within 62 cents of the number (which is amazing considering it's a 600 dollar giant) with the added bonus of S1. Very nice trading opportunity.
A few days ago we had a buy spot alert on APA at 106.5.
Very nice bounce at the number and again with S1 help. One of the things we repeat ad nauseum to our readers is to always trade more aggressively when several ducks line up in a row -- a reverse on a bounce is great but for a day-trade having a stock come into the number and hit S1 at the same time is just a nice bonus.
These were both day-trades and we are out of the positions. We think that GOOG has a date with the 50 SMA and that ultimately APA will also fail support. However nothing goes down straight and there often are great daytrade opportunities long on down days (within bull trends). We won't get into any swing trade positions on support until the pull-back shows a bit more teeth.
HMIN another one we posted in Twitter yesterday near 38 -- we had this on a breakout and it worked as a daytrade yesterday on a bounce on the same level. Very good continuation today.