It looks like MO broke through the wedge. As we can see, we are in an overarching downwards trend, so I'm going to short this stock. I am going to close this trend either if price reaches the 2-year lower trendline, or if price turns around and hits the edge of the wedge.
Trade active
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shorted at an avg. fill price of $42.49 SL @ $44.90
I agree, here. I’m long and add periodically. I might take a put position as a hedge and eventually sell to add.
PraefectusUrbi
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Hello @skullytwenty13, thank you for your reply! I can't really see why you are long here. Could you maybe explain it to me - because in the end we are all here to learn, I guess.
Let me share my thoughts with you, why I think that this stock is to be shorted:
MO is in an downwards trend since 2017, and I didn't see any higher highs, so I would say that this trend is still intact.
The chart also formed an upward-wedge since the crash in March, and upward-wedges tend to be followed by a decreasing price.
The price left this wedge between the 0.5 and the 0.618 Fib. retracement, which even strenghtend my idea that the downwards trend is going to continue.
So, I would really appreciate if you shared your thoughts with me. :-)