I am not looking to take any shorts at the moment, but if I were RDC offers a good set-up.
On the weekly chart there was a very long period of consolidation followed by a convincing move down. Once price was below the 50ma and had cleared the consolidation zone the trend began to develop. There was a pullback in October/November but a bearish engulfing pattern developed - giving a hint of the continued downtrend to come.
On the daily chart price has been trading below the 50dma for several months - except for the October/November pullback where a slightly lopsided double top formed. Once the break of the October low had been retested we wanted to see the 2010 low being taken out as well as $20.
Yesterday's bar achieved this and was bearish on higher volume so presents a good opportunity to short this stock. Price is still a few dollars away from the next support level. However, it has only just passed the 2010 low so it may be a little premature to enter just yet.
On the weekly chart there was a very long period of consolidation followed by a convincing move down. Once price was below the 50ma and had cleared the consolidation zone the trend began to develop. There was a pullback in October/November but a bearish engulfing pattern developed - giving a hint of the continued downtrend to come.
On the daily chart price has been trading below the 50dma for several months - except for the October/November pullback where a slightly lopsided double top formed. Once the break of the October low had been retested we wanted to see the 2010 low being taken out as well as $20.
Yesterday's bar achieved this and was bearish on higher volume so presents a good opportunity to short this stock. Price is still a few dollars away from the next support level. However, it has only just passed the 2010 low so it may be a little premature to enter just yet.