Here’s One Way To Take Advantage Of Human Nature
As you know, we tend to
place an order to sell a stock at a round number. I can’t explain why
we love round numbers so much, but we have to be careful if a stock is trading
near a round number.
11:45:39
(From TradingMarkets Traders Wire)
QUALCOMM (QCOM)
is trying to take out 40. Round numbers tend to be resistance levels. So often
investors and traders want to sell their stocks at the numbers like 20, 40, 60,
and etc. QCOM is trading at 39.87, up 0.54.
As you can see on the 3-minute chart, QCOM came
close to 40, but never touched it. Shortly before 12:00 P.M., the stock broke
down below a rising trendline.
Remember, don’t short a stock just because of it is hitting a round number.
Always get confirmations from other indicators.
If you have questions, please mail them to me.
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