Here’s One Way To Use The Previous Day’s Low
Intel (INTC) was
downgraded by CSFB to Underperform form Outperform this morning. This
is definitely negative for the semiconductor sector, but $SOX.X (Semiconductor
Sector Index) is still holding above yesterday’s low.
So often, traders use the previous day’s low to open a new short position. We
had such an opportunity this morning.Â
10:47:54
(From TradrsWire)
Temple Inland (TIN)
is bouncing off its 50-day EMA and approaching yesterday’s low. Short TIN if it
slips below 62.20. Target is near 60.50. Place a stop just above today’s high
(63.00). TIN is at 62.25, down 0.75.
Although the stock closed above the 50% Fib level
yesterday, volume was not convincing. In fact it was less than the average.
Also, some traders may say TIN is trading inside of an extended bear flag. If
the stocks moves below yesterday’s low, at least we have a good chance to see a
test of the bottom of the flag.
Shortly after the post, TIN broke down. Currently the stock is trading at 61.22,
0.72 away from our target.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.