Bearish potential detected for WEB

Aug 3

Entry conditions:
(i) lower share price for WEB along with swing of DMI indicator towards bearishness and RSI downwards, and
(ii) observing market reaction around the share price of $4.54 (open of 26th June).

Stop loss for the trade would be:
(i) above the declining 50 day moving average (currently $4.70), or
(ii) above the low of the candle on 24th July prior to the gap-down prior to the close below the 200 day moving average (i.e. just above $4.78), or
(iii) above the recent swing high on 23rd July (i.e.: above $4.93), depending on risk tolerance.

Aug 3

Trade active

UPDATE (week ending 01-Aug): Trade activated on 31st July with a close below support levels, as shown in the chart above, with the share price closing below 10 and 30 day MA's at the end of the trading week.

Aug 9

Note

UPDATE (week ending 08-Aug): Trade continued in a sideways trajectory throughout the week, with the share price closing below both 10 and 30 day MA's at the end of the trading week.

Aug 17

Note

UPDATE (week ending 15-Aug): A lower low was formed on the daily chart for WEB during the past trading week, with a retest of recent highs occurring towards the end of the week. Charts suggest lowering protective stops to a level above the previous support/resistance area of $4.60 from the open of 15th May (i.e.: $4.61 or higher), in case of a sudden snap-back in price and the formation of higher highs above the recent swing high of 8th August and the declining 50 and 200 day MA's (currently $4.58 and $4.60, respectively).

Aug 24

Note

UPDATE (week ending 22-Aug): Relative strength compared to the All Ordinaries is starting to emerge with WEB, which is placing this short position under threat. The share price has been inching higher and higher over past week, still constrained between the 10 and 30 day MA's, edging closer towards the lowered protective stop. Be prepared to cover for a scratch trade should the protective stop be triggered.

Aug 30

Trade closed manually

UPDATE (week ending 29-Aug): This stock is certainly an intriguing one - as suspected, the share price 'triggered' the lowered protective stop on Monday and would've shaken out any traders/investors who would've lowered their stop to the level of about $4.61, but anyone who put a mental note to check out the price action around that area would have noticed that the market reaction around that area was mild, to say the least. It wouldn't have been a problem for anyone nervous to have exited for a scratch trade, without any worries - always better to be 'safe than sorry'. For those who remained in the trade, Tuesday's price action would've rewarded them as their short positions would've turned quite profitable once more - for anyone still remaining in the trade, the daily charts suggest tightening stops to just above the prior swing high from 20th August (i.e.: just above $4.55), but coverage will be ceased from here onwards - chart too erratic... All of the best!