My first trade of the day takes place in W.W. Grainger (GWW) at $210-flat. I've been watching this stock for a few weeks now for a swing-trade, and recent weakness finally gives me my entry on this stock.
I missed the initial breakout in the stock, but instead of chasing it, which usually never leads to anything good, I waited for the pullback to support. At that point, I am able to see how it did initially on the breakout, and then decide whether its strength is a flash in the pan or an actual breakout that is giving buyers a second chance.
My Stop-Loss is at $200.25. That's a bit wider than what I'll usually take on, but assuming it doesn't stop me out in a matter of days, I'll likely have an opportunity to tighten the position considerably.
Here's the long setup in GWW.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>