New 55 Day High with 200% + Volume
Date: May 14, 2018 (Mon)
GLUU made a breakout and a New 55 Day High last May 2, 2018 (Wed) and is stalling at 5.50. The entry of that quick drop at 5.07 was actually a perfect entry. I should have not pulled it out. But this action might retest the support line at $5.00 where the red candle with a long tail set on May 7th of 2018. We will wait for a possible VCP formation here unless a breakout occurs at 5.5 with a strong volume. It`s been 8 days now since the New 55 Day High.
EGY made the New 55 Day High last May 3, 2018. It`s been 7 days since its run from that breakout. It hit a high of 1.69 but could not hold on to that level and fell back to $1.50. It seemed it is consolidating around this price line. RFIL is an example of how this can possible take its move upward. Take a look at RFIL.
The principle I am trying to use here is the one of the Turtle trading System using the New 55 Days High of Dennis Richard as mentioned on the book of Michael W. Covel entitled "The Complete Turtle Trader". I am combining the system with the principle used by Mark Minervini in his book called "Trade like a stock market wizzard." His principle used the VCP (Volatility Contraction Pattern) formation of a rising stock which the stock uses as a springboard to another new high.
The following is the illustration of the VCP formation. After hitting the $3.00 support RFIL broke-out the $3.15 or the 3.20 drop, as seen on the big green candle on Feb 13, 2018 (encircled). A retest followed if the low of this candle can hold. Thus, we had a drop of red inverted hammer candle around March 1, 2018, followed with a rally and a break-out again at $3.20 (encircled at far right). Everything came with smaller volume with price slowly rising.
ANALYSIS OF RFIL
Date: May 14, 2018 (Mon)
GLUU made a breakout and a New 55 Day High last May 2, 2018 (Wed) and is stalling at 5.50. The entry of that quick drop at 5.07 was actually a perfect entry. I should have not pulled it out. But this action might retest the support line at $5.00 where the red candle with a long tail set on May 7th of 2018. We will wait for a possible VCP formation here unless a breakout occurs at 5.5 with a strong volume. It`s been 8 days now since the New 55 Day High.
EGY made the New 55 Day High last May 3, 2018. It`s been 7 days since its run from that breakout. It hit a high of 1.69 but could not hold on to that level and fell back to $1.50. It seemed it is consolidating around this price line. RFIL is an example of how this can possible take its move upward. Take a look at RFIL.
Below is the Chart of RFIL. The breakout at $2.80 last Jan 24, 2018 was the mark of the New 55 Day High. The price surged up to $3.50 but could not sustain it. It fell back to consolidate slightly above the $3.00 whole number line support. It took 33 days for the stock to regurgitate then made a gap-up move and reached another New high up to $5.50. If EGY finds its support at $1.50. You jut need to wait patiently for the price to make another breakout and probably a huge jump beyond $1.60. VCP formation might be taking place around $1.50 or 1.40. We have to wait. The initial low of $1.51 (3) three days after the New 55 Days breakout on May 3, 2018 if broken with a reasonable volume is a signal for possible entry. For now we have to wait on the move.
The principle I am trying to use here is the one of the Turtle trading System using the New 55 Days High of Dennis Richard as mentioned on the book of Michael W. Covel entitled "The Complete Turtle Trader". I am combining the system with the principle used by Mark Minervini in his book called "Trade like a stock market wizzard." His principle used the VCP (Volatility Contraction Pattern) formation of a rising stock which the stock uses as a springboard to another new high.
The following is the illustration of the VCP formation. After hitting the $3.00 support RFIL broke-out the $3.15 or the 3.20 drop, as seen on the big green candle on Feb 13, 2018 (encircled). A retest followed if the low of this candle can hold. Thus, we had a drop of red inverted hammer candle around March 1, 2018, followed with a rally and a break-out again at $3.20 (encircled at far right). Everything came with smaller volume with price slowly rising.
ANALYSIS OF RFIL
A.The
price dropped to 3.15 but pushed back higher yet did not breakout the 3.50 new
high that was created by the green candle. This price drop continued until it hits $3.00.
B.From the $3.00 whole
number support it made a breakout at 3.15 with big green candle. This is the
signal of the reversal. Like any breakout it will be retested. And so that is
what happened with the drop at C.
C.If you made a buy stop
order at 3.15 or at
$3.05 the low of the green candle on B, you could have made a position already.
A.Having
entered at $3.05 and have rode the price up to where the Gap Up is, then you
could have cashed out at $5.50 or anything slightly lower than that in the
early morning. Or if you want to make a measurement. The height of rise on A
would be the possible next price target if you place that height from the low
of the consolidation after the gap-up which is $4.30.
The possible next target of RFIL would then be $6.50 
