One pattern I’ve noticed being pretty powerful lately, is like what Patterson-UTI Energy Inc (Nasdaq: PTEN) did today. Here’s the 2-day 30 min chart so far:
The key is that the openening range tops out right around yesterday’s HOD. It seems like when it breaks through that, it tends to do well. I mentioned this pattern about a week ago in regards to a trade I made. In that other post, I mentioned two examples I had spotted. I’ve been noticing it more and more.
I should also point out that the OR high was near (but not exactly at) round number 26. That was a factor in the trade in the older post, as well.
I didn’t notice the PTEN setup in time to trade it today… the daily trigger for a trade was around 26.40, well into the run.
[edit: I see that Grant Prideco (NYSE: GRP) is another example from today, minus the round number.]
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| PTEN |  |  |  |
| GRP | | | |
November 29th, 2006 at 6:51 pm
nice post on the Top range breakout , check out my in depth post on Opening range breakdowns.
December 5th, 2006 at 10:26 am
[...] Today’s example of the pattern I’ve been talking about is from Ceradyne Inc. (Nasdaq: CRDN): [...]
December 5th, 2006 at 1:31 pm
Richard,
that is an interesting discovery you’ve made, I will be on the lookout for this…..
For this new pattern that you’ve found are you going to give it a name ?