When a stock makes a key upside breakout with a big green day you often see some form of consolidation the next day although you certainly expect price to move higher. At times strong momentum up continues the next day. Either case presents a high probability trade opportunity depending upon how price action starts the next trading session.
$TDOC had a key breakout yesterday above prior all time highs (blue line).
This was also a big green day that reached very close to 100, or a round number where a price pause was likely before resuming higher.
So, expecting a consolidation day, with buyers likely to step in with any decline of price within yesterdays green bar, a high probability buy opportunity unfolded when price opened lower and moved to trend line support where I placed a buy at 94.75 about 25 minutes into the trading session (Arrow at entry).
Within 15 minutes price moved higher as expected to scale out (Sell at 96.10) and set up a no risk trade to see how price would resolve out the consolidation wedge that was forming. Expectation was to move out of the wedge higher to approach yesterdays high for $$ gains, and if price broke lower instead, you would break even.
As expected, price broke the wedge higher moving to yesterdays high near 99 for nice $$ gain opportunities.
After a big green day, context is to expect some consolidation with an up bias. This means if price starts the session lower, it presents a high probability buy trade, as responsive buyers who missed yesterday’s move up are eager to buy today.