Here’s One Way To Trade A Breakdown
Adobe Systems (ADBE)
failed to take out a short-term declining trendline and closed just
above the 20-day EMA yesterday.
10:12:43 (from TradersWire) The time is 3
minutes slow.
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
ADBE | sell stop at 32.04 | near resistance level | 32.19 | 31.88 | 32.08 |
TK |
Now let’s look at the 5-minute chart from today’s
session. Shortly after 10 o’clock, ADBE hit its intraday high of 32.26. Look at
the stochastic. It was showing a negative divergence. The stock could be forming
a top. At 10:10, ADBE broke down below its 8-period EMA. I decided to place a
sell stop order just below a rising trendline.
10:19:10
Follow up on ADBE (Pt 2)
It has hit our target.
Feel free to mail me your
questions.
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