We have watched two excellent Range Plays on the Open with Stocks in Play recently in our Video Review Sessions.  One was in LVS.  One was in OSK today.  Let’s walk you through this trade set up so you can add it to your quiver.

OSK gapped up on the open after receiving a huge new contract from the government.  That never hurts.  The question was would OSK trade higher or would it fail and sell off.  This is a simple trade.   And one pattern you must learn to exploit with a Stock in Play.

Again let me set the context for why I offer this set up.

New Trader: Bella I don’t trade the open well.

Bella: You are in the wrong set ups.

New Trader: Which one should I be in?

Bella: The ones we teach you.

If you are not making money on the open then you are not in the right set ups.  It does not get any easier than trading on the open.  And this Range Play on the Open is one of our best.

So what happened?  Again remember this is not going to be rocket science.   OSK could not trade above 18.80 after the first few minutes on the open.  OSK could not trade below 18.70.  Significant volume was done between these levels.  And then 18.70 dropped.  I hit the bids.  The stock traded in a clean downtrend to below 18.

Nothing difficult about that trade.  You just must recognize the pattern.  And then pounce on this easy, profitable set up on the open.

18.80 is a huge resistance level in OSK.  We will get long if OSK holds above 18.80 tomorrow.  We will short if OSK holds near and below 18.80 as well.

Best of luck with your trading! Don’t forget to follow us on Twitter!