How To Play A ‘Neutral’ Setup
Quite often after an initial
breakdown, a second consolidation will develop in the direction of the stock’s
trend.
In TASER Int’l. (TASR) my initial focus on
potential entries was geared towards flexibility–in the form of the notoriously
neutral symmetrical triangle. I personally felt there were good technical
arguments to trade a price break from either side. The bulls had an oversold
condition and a good technical level in the form a moving average which could
get the shorts in panic mode–should the stock breakout above pattern and MA
resistance. The bears on the other hand, had today’s price split action, which
was showing anything but a bullish tone for the stock, as well as the other side
of the pattern for which to set shorts from.
11:47:38
Intraday Setup Alert
TASER (TASR)
has formed a symmetrical
triangle–down 2.56 at 35.29. The intraday pattern might be considered for
entry on a price break from either side. For short entries, this would be
considered a continuation play, and for longs, the pattern would be considered a
reversal play as daily chart MA resistance is overcome (see attached).
As it turns out, da’ bears had it. A break below
35.10, and the stock was set in motion to the downside. Shortly thereafter, a
well-defined consolidation came into being on the 5-minute chart. At that point,
I put out a second alert with emphasis on the short side. Even though there
might be a double bottom test, it seemed that this consolidation, so close to
the session lows, was actually emphasizing the possibility for further shorts
after the bulls complete failure out of the first, neutral pattern.
12:28:10
Intraday Setup Alert
TASER (TASR)
is forming an intraday consolidation slightly above session lows, after breaking
symmetrical triangle supports–down 3.21 at 34.64. Continuation shorts might
be considered on a breach of the current 5-minute pattern, set below 34.44.
Nice, all the way down to ‘the bar’ and #33 is
just waiting for you to take a nice sip after a solid day at the office.
Chris Tyler