We became aware of potential interest in this one via our usual morning routine of scanning for unusual pre-market activity.
As per our "10 Commandments of Trading", we stalk potential opportunities until roughly 10:45 in order to try and weed out all the market maker shenanigans in addition to giving the Indices adequate time to show their hand.
Anyway, as it happened, MOBI tripped our proprietary filters which gave us a lot more confidence that it might hold it's gap open.
That and the fact that the Dow was up around 150 points by time my cup of coffee was ready..lol
Feel free to review this chart to see just a part of how our methodology works.
I just want to point out that as far as this chart goes, one of the defining moments was when the 2nd doji candle(circled) slipped below the burgeoning trendline(pink) yet closed above it.
I was watching this one unfold and I can tell you that it could of gone either way!
We issued our Sell Stop level to our members and as we all know, fortunately it just took off from there.
We really like that kind of pattern as think about what it indicates..
Most probably a market maker or two had a huge amount of client buying to do but they first wanted to walk any weak hands to the door.
So, they take it through short term support but the true buying emerged and it closed above it.
And yes, we do get this granular in our approach.
Anyway, we did take some profits at an average price around $8.36 for a nice 8% gain!
Feel free to engage with us during the trading day by accessing the Live Chat widget on the bottom right of our website..
And yes, like the majority of our methodology, a human will be involved..not a machine ;-)
So, look over this chart and by all means, reach out to me if you have any thoughts or questions.