Trading IPO CSUN - China Sunergy

I’ve mentioned before, first day initial public offerings are favorite trading candidates for me. There’s no resistance above the highs they make, and they often provide clean trading patterns.

Today, CSUN - China Sunergy was one of those IPO’s that traded a pattern I’d like to find every day.

Using a 15-minute chart cuts out some of the noise. There’s a combination buy signal on the eighth candlestick. You’ve got a NR7, and a classic buying pattern. Risk - R is less than a dime here, which is excellent reward/risk. Aggressive traders would place a stop under the seventh candlestick. Conservative online trading would dictate placing the stop under the day’s low. CSUN was pretty non-stop from that first entry point.