Below is a daily and weekly chart of Dominion Energy Midstream Partners, LP (DM).
Each morning in pre-market preparation, we analyze the gaps of the major market indexes to develop a trading bias for the day. Additionally, we monitor all open positions to see what trade adjustments might be necessary and/or profit taking.
Then we analyze stocks “in the news,” companies announcing earnings, and other gapping stocks to see what trading opportunities might set up for day and swing trades.
Today DM hit our gap radar screen since it is what we call a Professional Gap (i.e., possibly igniting a new move). DM is gapping pre-market to $16+ in a weak market showing great relative strength.
This is a gap breakout from multi-month consolidation with deeply oversold weekly chart. There is no reported news yet in Yahoo Finance but rest assured some news event created this gap.
We will be monitoring today in the Master Trader Green Room for possible long stock and option strategies, and will advise accordingly.
