NOAH plunged to the 200dma on Tuesday but caught support. On Wednesday it maintained support and today it proceeded to gap up on heavy volume. For fans of the “Right or Right Out” (RORO) trade, NOAH offered it vs the $21 level (both Tuesday and Wednesday’s low of day). The reason this was a good RORO trade was because of the following:-Shakeout below major support (200dma) And recovery
-Support established consistently (back to back days at $21)
-Day two (in this case Wednesday) showed support by closing in the middle of its range
-Small distance between entry and exit (if entering at close do day Tuesday at $22.22 vs $21 exit)
Today
NOAH reversed, closing at the low of its trading range. It found resistance at the 10ema. For those in the RORO trade, today would have been a good day to lock in profits. For those letting it ride, they’d want to see today’s low of day at 24.70 hold.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.