CRUS trade ideas
With CRUS, does history repeat?Cirrus Logic is trading 12% lower today on what was apparently excellent earnings. They beat estimates by .24 or around 30%. Last earnings gap down was almost immediately bought.
Two ways to play:
First Way: When price breaks below today (10/30) low, put in a buy stop at the low price. That way if it continues to break down you don't take a position and if it recovers after running the stop you get in. At least that how it works in an ideal world. Normally I just watch the trading and manually enter the order, because it'll generally chop around the low.
Second Way: The second way is to buy on strength over today's candle. This doesn't provide as good risk/reward as your stop is below the most recent low (currently about $21), but the likelihood of success is slightly greater.
I'm not partial to either method, if price action breaks today's low and recovers in the same day, I'll get long there. If today's low doesn't get retested and instead we go for the gap fill in the next two days (as happened last time), then I'll buy on strength as in the second scenario.
Feb head n shoulders' top achieved the target priceStill the measured move indicates that the chance to see $12.50 August low in 2012 is very high. The short term target is achieved and nothing goes straight down, now a bounce is very likely back to $22 area before it heads to $12.50 Join us woowtrading.net
