SAVA Rising
Feb 02, 2021
SAVA was one of the top stocks I was watching this morning. The volume was good. It was a gap up stock on a bullish day in the market.
Here's the chart of SAVA:
After the initial move higher before 10 o'clock, there was a long period of consolidation that lasted nearly two hours. But, around 11:30 AM, the green arrow points to a protracted area of rising prices with very little retracement.
Inside the morning chat room, I debated posting it as a high probability long during that protracted retracement. That would have worked, but it was still a bit unclear at that time. Looking back, the upward break-out is obvious. But you never know that ahead of time. So you wait for a measurable retracement, place your stop, and enter the trade.
Some of the members of my chat room traded it several times and they did very well with the trade. They moved their stops higher as the price continued to expand. That's the best way to trade these occasional "geysers".
While a trader can look at raw volume as an indicator, a better tool in my view is PVT (Price Volume Trend), which displays exactly what you'd expect it to do.
For example:
Placing a 20-EMA on the raw PVT data is another way to help you visualize the upward trend and momentum of price.
Often, these stocks produce good volatility for several days. So it could be worth watching for the rest of the week. But...just don't assume that it can only go higher.
Interested in Bob Joiner's day trading chat room?
At the following link, you'll find a 2-minute video overview and a link below that video to receive more information.
