Contingent buy orders have worked very well for us in the past and there is no reason why we should veer away from this strategy, especially with a stock like Huntsman (HUN). Right now the stock is sandwiched between
two gaps, so we want to wait until the lower gap fills before we even think about taking a long position at this point.
If you have been following along with our gap trading ideas you will know that once a gap fills there is an 80% chance that the stock will reverse from the gap fill point. Therefore we are expecting the stock to trade down to the 14.45 level, fill the gap, bounce and then move back up to fill the second gap above the market at $17.
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