Guest Post: Swing Trade: CorVel Corp. (CRVL)

Posted on February 1st, 2007
Written by Phileo
Posted in: N/A (old archives)

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

CorVel Corp (Nasdaq:CRVL) is a stock that I found out about from TradingGoddess.

crvl exit on the daily

1. Why did I take this trade?
Corvel made a textbook hammer reversal pattern last week. Rather than wait for confirmation that the hammer reversal was complete, I decided to buy CorVel Corp. (Nasdaq:CRVL) when I saw that it had put in a higher low on the intraday.

2. What was the initial stop?
The initial stop was at 43.3, but I moved it up to 46.50 on Tuesday night.

Crvl exit

3. Why did you exit where you did?
CRVL started to act funny and moved down this morning. I got scared and exited @46.72 before it had a chance to hit my stop.

4. Is there anything you would do differently?

Yes, I need to learn that the party is not necessarily over despite my decision to leave. CRVL offered a good opportunity to buy back in when it broke above 47 just after noon. Had I been alert and watching it, I could have gotten back in at just above 47 with minimal risk.

I will watch it to see if there are any more low risk entries in the coming days.

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