There are times where I look at a chart and can see a potential for opportunity with a variety of trading approaches. Today I find myself starting at the chart of MFLX (Multi-Fineline Electronics) after a nice Gap up move:
In reviewing the chart, several things stand out to me:
1) The RSI is in Over Bought territory above the 70 level.
2) Price has produced a Gap that will eventually get filled
3) Volume is massive on this Gap up move
4) Profit taking could potentially turn this Daily candle in to a Shooting * – a Trend Reversal signal
With that in mind, and no current position, what is the highest probability setup that you see?