BBVA Strong Opening Gap
BBVA is a Spanish bank that provides retail banking, wholesale banking, asset management, and private banking services. It offers banking services in Spain, Mexico, South America, the US, Turkey, Asia-Pacific, and Europe.
This morning, Oct 5, BBVA opened with a substantial opening gap clearing two areas of S/R. Since Nov of 2020, BBVA has been in a solid upward channel. This gap comes after a recent test of the bottom of the channel. A volume spike accompanied the test of the bottom.
On the daily chart, RSI and ADX both show an upward trend with room to run. However, the ADX does not offer much conviction. When looking at the weekly chart, we see the same lack of confidence in the ADX. But RSI is signaling a solid bull trend.
When trading gaps, I place the stop loss at the high of the previous candle. If the price whipsaws and closes the gap, I want to be out as soon as possible. I placed it at 3:1 RR for the profit target since it is slightly lower than the top of the channel.
This morning, Oct 5, BBVA opened with a substantial opening gap clearing two areas of S/R. Since Nov of 2020, BBVA has been in a solid upward channel. This gap comes after a recent test of the bottom of the channel. A volume spike accompanied the test of the bottom.
On the daily chart, RSI and ADX both show an upward trend with room to run. However, the ADX does not offer much conviction. When looking at the weekly chart, we see the same lack of confidence in the ADX. But RSI is signaling a solid bull trend.
When trading gaps, I place the stop loss at the high of the previous candle. If the price whipsaws and closes the gap, I want to be out as soon as possible. I placed it at 3:1 RR for the profit target since it is slightly lower than the top of the channel.
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Feragatname
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