A Pullback On Weak Volume — An Example From PLMO
If a stock is pulling back from its
recent low on weak volume, you have a very good candidate for a short sell.
It may be also forming a bear flag.
11:02:02
(From TradingMarkets TradersWire)
Â
Setup Alert
palmOne (PLMO) is beginning to form a bearish tail just below the
declining 20-day MA. PLMO is down 0.13 at 31.09. Â
As you can see, the stock is losing its steam, and volume is drying up. One
simple way to sell this stock is by placing a stop sell just below yesterday’s
low. If the order is filled, you may place a stop loss slightly above today’s
high.
Shortly after 11:30, PLMO broke down. Watch out for volume, especially a stock
is in a pullback.
Have a nice afternoon trading session.
If you have questions, feel free to mail them to me.