Entry time: 09.49 EDT.
Exit time: 10.09 EDT.
Entry price: $28.10.
Exit price: $28.44.
Strategy: Reversal long.
Net profit: 30.50 cents/share.
Criteria for taking the trade:
1. The market is in uptrend (SPY daily chart below).
2. This day SPY began with a gap up and the sentiment was generally bullish (SPY 5 minutes chart below). This is a good day for reversals on stocks that are visiting for the first or second time an intraday support after a sharp decline.
3. HBHC has visited a strong support at the 2 hours chart (below).
4. The entry was at $28.10 due to the fact that the lower price of the prior support level was at $27.96, relatively near to the entry point. This allowed a stop of 15 cents/share (at $27.95). The first target was at $28.70 (below), so the ratio 1:3 holds. We exited the position due to the stop being hit.
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