Thursday, July 13, 2006

Gap Up For Profit

While I like to play gap-downs I will play a gap-up every once in awhile. The following two charts show good gap-up opportunities. OKE gapped-up on good volume then threw off a little hammer. That would be a good place to buy. PPC is my favorite kind of gap-up - a black hammer followed by a bullish engulfing long white candle. Although both went up, OKE grades at about a B and PPC hits a B+. To get to "A" PPC would have had to have a bit of a longer body.

The sell off point on PPC would be around 27.40, 30 minutes after taking the trade. The sell off point on OKE would be about 36.20 or about an hour after taking the trade. The sell off point is a candle with a long wick on top followed by a black candle.

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