One Way To Use A Gap For Short Selling
When a weak stock is
staging a minor rally, it is a good time to consider a short position.
Sooner or later, it will resume its downtrend. Be sure to visit
TradingMarkets.com Pullbacks From Lows for attractive short selling
candidates. Â
10:13:43
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Setup Alert (From TradersWire)
Talbots (TLB)
looks ready to resume its downtrend. It is testing yesterday’s low, and trading
at 25.85, down 0.14.
As you can see, Talbots has a big gap to
overcome. So often, gaps tend to be strong resistance levels. Some traders try
to sell the stock as soon as it trades below yesterday’s low, or you can wait
for a breakdown below a bear flag.
Shortly after 11 o’clock, TLB broke down below yesterday’s low. Indeed, a gap is
tough to overcome.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.
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