TECH
recently broke its major upward trendline, creating a short trade possibility with a small risk and high reward. As this trade progresses, longs would will be forced to exit, creating a potential for a steep move down, at least to the trend start around $190
Factors leading to the decision:
- Price was rejected trying to make a new high in January, creating a new minor downtrend
- Heavy volume as it broke the upward trendline
- Today (entry day) price came up to re-test the trendline and was rejected
- Price has crossed and held below the 20ma two weeks ago
- Two recent high fractals offer great places for tight technical stops
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
Comment:
Still hangin onto this trade... moved stop down to 180.25
Trade closed: target reached:
I was stopped out of this successful trade at 180.25 for a 15% gain