Tonto Trade – GE (a technical delight)

GE gapped up at the open and immediately extended to the 38% fib extension drawn from yesterday’s low to the ORL. It consolidated around that area (throughout the morning) forming a clear ascending triangle that can be see on the chart. After noon GE broke the 38% level, but since GE was already extended I decided to wait for a pullback. GE extended to the 50% line and pulled back to the 42% line, where it printed three candles with long lower legs (the third one was a hammer-like candle). Price extended to the 61% level where it took a breather (and I took a partial). And then extended to the 75% line where I exited. Pretty neat!!!