Trading Gitlab After Earnings Report

Hello Traders, today we made a good scalp on Gitlab (GTLB). They reported their earnings after yesterday's close. Price surged up until this morning's open.

As expected, there were profit takings at the open, I just didn't expect it to take back all of the gains from yesterday down to yesterday's close.

I wanted to get in the trade and I know I have to be patient. I waited for the 2-legged pullback confirmation before I get in. The 2-legged pullback is an edge that confirmed the sellers have nothing more to sell. The higher low was another confirmation.

If you look at the chart above, I started counting at the last doji that tested yesterday's close at 66.04. The L2 candle was my signal bar; sellers tried to push the price for the second time but failed to. Price close above yesterday's close. I placed my long option spread order at the open of the entry bar.

My take profit (TP) was at the last week's high price at 68.69.

Patience pays off traders. Cheers.

I am not a professional investment adviser and my opinions are based on my own technical analysis. Please consult an investment professional before making investment decisions.

Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.