Tag Archives: bearish engulfing

Targa Resources Prtn Units (NGLS) Day Trade

4 May

Another stock I added last night to my watch list was NGLS so I watched it today.

Targa’s stock looked ripe for a bounced based on yesterday’s price action. You can check yesterday’s post to see my notes on that.

I watched the 5 minute chart to plan an entry. The first opening candle didn’t feel very convincing. The second candle showed a price rejection above yesterday’s high and a huge bearish engulfing third candle almost turned me off to this trade. I looked for a follow through candle after the large bearish engulfing candle which would have definitely kept me away from this trade.

But, surprisingly, prices moved up and kept trying to break above yesterday’s high but kept getting rejecting until there was a bit of 5 bar consolidation starting at 10:40am.

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