Gap Momentum with NR7 - FEIC

High volume gapping stocks offer good trading opps if you can sit on your hands until a good setup presents itself.

There were two trading opps for FEIC on Friday.

1. Fib retracement long - red fib lines where you should target the 23.6% FE. I missed it. After coming within 10 cents of the FE, price consolidated in an increasingly narrow range, which we identify as coiling ahead of the next leg up.
2. Within the coil, we spot the NR7 bar and place a long entry, using a few cents below the low of the NR7 as the stop.

Related post - NR7

Day Trades - RIMM NFLX MOS CMG FFIV WYNN

As noted yesterday, RIMM had broken out of a multi-month base. Today, I placed a buy stop order above yesterday's high. Took a partial at the 62% Fib. extension. The balance ran up to 150%. The last 50% of the move was euphoric as we can see from the volume.

On the 15 minute timeframe below, we see that RIMM breached the top of the upper BB on a euphoric volume spike, marking the end of the move. Like capitulation, this is a tradable reversal setup.

Short RIMM on 1 minute timeframe.

NFLX and MOS were HCPG picks from last night's newsletter. I wasn't in love with the NFLX setup until it printed a NRIB - NR7, one of my favorite entry points. Price/volume contraction ahead of expansion.

MOS was entered on the pullback.

CMG took out post earnings gap highs, formed a base for the next leg up. I'm posting both the 5 and 15 minutes.

FFIV - Fib. retracement trade on 5 minute timeframe.

WYNN - Failed setup.