Trade of the Week for January 16, 2017
STOCK SYMBOL: GLBS
Often times we use the past history of a stock in order to devise and refine our daily trading plan. A good example of this was on the morning of Friday, January 20th when we noticed a common trade setup on GLBS (Globus Maritime Limited).
We can see the prior week’s trading action on the 15 minute chart that I included: clear higher lows, strong momentum, big volume and resistance at $9.50. All of these factors contribute to the high probability trades that we wait so patiently for. If we switch focus to the 1 min chart on the 20th, you might notice that volume in the premarket started to pick up right when the price broke through 9.50. This is usually a good sign for longs (if it sustains and support holds) and it’s no surprise that there was interest in the stock after breaking through that strong resistance at $9.50. There are many ways to trade a momentum runner like GLBS but one of the strongest setups that we teach is entering when the stock breaks above premarket highs. In the 1 min chart attached, the high probability move here is over the premarket high of $10.75 after which the stock jumped to ~$11.75.
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