My [PLUG] order was filled @ $1.65.

In my first ever post on plugpower, I provided the chart model below with the comment that I was hoping for an E of B bottom in the "1.55-1.80 range".  Note that if this really was a falling wedge that blue E should be a 3 wave move, not 5.



Because of the above analysis, I put in a buy order for 1k shares at $1.65.  This was filled in the Dow crash this morning.  Yes it's not much money but if the analysis begins to work in my favor then I can always buy the wave 2 dip.


But before we get ahead of ourselves, let's do the full analysis.  Zooming way into the 30 minute chart below we see three things that I currently deem to be quite interesting:

1. The move was indeed 3 clear waves down.
2. The lower end of my price target ($1.55) was hit exactly.
3. After bottoming, the chart popped back up into the channel which is the first confirmation of reversal of a falling wedge.

 

Folks, I don't know what is going to happen for sure in the future.  No man does.  But when models begin to work this well you simply have to wonder if they won't continue to be correct in other aspects as well.

True to my stated plan, I bought these based on the chart meeting certain criteria which it clearly has.  Will it continue to do so?  Who knows?  But I do know this: my stops are set at $1.54.  If I am wrong then I stand to lose 7-8% of a small bet.  But if I am right, then this could turn out to be a new Tesla paid for with cash. 

If the herd is going to take this lower, and it could happen that the C wave extends more at this point, then I will stop out for an 11 cent loss at which point I will attempt to see if the model can be salvaged before re-entering.  But if the chart now holds that lower rail and then begins to move up tomorrow then I'll just leave my stop in place and look for a dip to add into.  If the upper rail is broken out, especially if on some kind of crazy positive news, then I'll just sit back and see where it takes me.

This is the essence of the asymmetrical bet when it is aided by EW analysis.