Buy Setup at prior low on
increased volume. CGNX closed the previous week
very oversold, near its low. Volume picked up in
the area of the prior low set late January,
before it exploded up on a bullish wide range
bar. It also overshot its 200MA, which is
watched by many traders as an area of support.
Previous day it made a bullish Changing of the
Guard (+COG), and also had a bottoming tail,
showing that the bulls have taken back control
of the stock for a bounce.
chart courtesy of
Tip: Stocks that close
strong after retesting a prior major low on
increased volume are poised for a tradable
Buy once it trades over previous day high
($18.95). Stop above $18.29 (close of two days
ago - open of the previous day). Move stop break
even once $.50 in-the-money.
A move to the $21.00 area.
CGNX did not trigger because
of the excessive gap caused by positive
earnings. If the gap was less than 50 cents, it
would have still been considered as entry within