This Is One Way To Trade A Breakdown
Following a breakout
above a declining trendline, shown below, Cardinal Health (CAH)
followed through to the upside and closed near the day’s high last Thursday.
But, this was a false breakout. CAH gapped down below the 200-day EMA this
morning.
09:56:07 (From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
CAH | sell stop at 54.64 | testing intraday low | 54.84 | 54.40 | 54.76 |
TK |
The stock attempted a weak rally
lasting only 2 bars as you can see below on the 3-monite chart. CAH immediately
slipped below a mini-triangle and approached its intraday low. It was a
potential breakdown situation. I placed a sell stop at 54.64.
09:58:18
Follow up on CAH
The issue has hit our target. Move stop to breakeven.
T.Kamada
If you have questions, feel free to
mail them to me.