Today was an exciting day! My nervous definitely got the best of me, should sleep well tonight! It started out selling my very small gap in the am of $SEFE. Buying at my support yesterday proved to be a good buy. However, I would not hold overnight with a big position when that close happens again. One rule for gap plays is to look for it to close at or above the days high.
There was a rumor and proof in the after noon that $SEFE was SMA new pick. I jumped in this stock with a small position. However, I did not like the sell action, volume, and the level 2. Things did not look right to me based off of what I have learned so far. I jumped out of this stock 1 cent lower which washed even with my gains in the am from the gap. This stock continued to dipped lower even though it eventually did end up going back up past my entry for further gains. I did consider this a good trade though because things did not look right from my indicators and I got out minimizing my loses. The opposite could have happened and it really wasn't SMA pick which would cause it to drop even lower. It was really neat to take in the little volume action, sells vs buys and level 2 to come up with my sell sign. Which was accurate since the stock ended up going 3 cents lower before coming back up. It would have been a scary hold if you did, which could have resulted in selling lower.
$SEFE did get announced as SMA pick about 20 minutes before the close. However, due to what happened earlier I wasn't as quick to jump in (1 day trade left for almost a week). I left a lot on the table but took a safer buy and bought at EOD at the close price just like I would for a gap. Monday morning pre market will determine how I execute my plan.
I will only be focusing on my plan for $SEFE in this write up due to it being my main play and I don't have any other picks I am considering playing. I will do a write up on Sunday about other stocks to watch, including updates.
$SEFE:
Resistance:
1.75- Was EOD resistance for this stock which should break Monday on gap. This could act as support both right away and further in this stock.
Support:
1.73
1.70*
1.66
1.64*
1.62
1.60
1.57
1.55 - If it breaks this support which is Friday's LOD it will mean $SEFE is no longer in play for me till things change.
* = Could play a really big role in support.
Here is my $SEFE plan for Monday morning and further along in the promotion:
In the AM I will look at the level 2 to see how $SEFE will perform. If it looks bad I will sell and get in on the dip. If I do end up holding I will look to see if in the 1st 3-5 minutes the volume matches or beats the 3-5 minute volume on the chart towards Fridays close. If the volume does not I will sell. The level 2 will also be an indicator towards my actions. If everything looks good and the volume holds out I will sell on the way up while keeping an eye open for the volume and level 2 action to start dying down (level 2 should become stacked on the ask and you will see sells going off). This will be a sell indication for me. If no dip occurs I will continue to hold, there most likely will be a dip though.
If I sell for any reason stated above, I will be looking for support and buy there. Once I have that buy in place on the dip I will continue to hold as long as the stock doesn't make lower low's. What I will be looking for as a hold signal is higher highs and higher lows (on the daily chart).
$SEFE should become my new gap play if everything goes ok like $LUXR was suppose to be. Hopefully this outcome will be better. But hey I did get one gap play out of it. I will sell the gap, and leave those initial shares that I bought on Mondays dip for my swing trade (it will be my 1st time trying this!). I will not play the gap on days that $SEFE closes in the red. It most likely will not gap and even if it does it is not worth the risk to me. I will only play the gap on green days where it closes near the days high just like I would with any other gap play.
That is my game plan both for Monday and further into the trading week. I will give an update on Sunday with other plays or if I change anything outlined in my play. Enjoy the $SEFE gains everyone! This should be a good play!
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