20070418 - IBM - 15mins - Observation

Here's another Observation. Kind of like a Self-reminder.

(IBM) gapped down during opening. The Opening Bar was a long weak one, and then it rebounded. Soon after, it re-tested the Opening Low. As it was approaching the Opening Low, that's when I checked the Daily Chart (see first chart above.) I noticed that there is a Supporting Range near the $64.50 level. I drew that line on the 2nd graph, and I quickly noticed that the Profit Margin isn't that great if I am to enter this trade. Therefore, I will classify this as a 'learner-type' of trade.