This Is Why You Should Look At Different Time Frame Charts
If you were daytrading,
you would probably not think about shorting OSI Pharmaceuticals
(OSIP) at 47.79. Look at the 15-minute chart below. It was showing a clear
negative divergence when the stock was hitting 50.
12:10:13 (from TradersWire)
 Swing Setup Alert
OSI Pharmaceuticals (OSIP) is bouncing off the 50-day MA and nearing
yesterday’s low. A sell stop can be placed at 47.79. Target is 45. Risk one
point.
This trade is based on the daily chart. OSIP is struggling to take out the
declining 50-day MA and 50% retracement level (2/15/05 high – 4/4/05 low).
Notice the 14-period stochastic is also beginning to turn down. I placed a sell
stop just below yesterday’s low. Of course, you could have sold the stock
shortly after confirming a breakout failure above the Fib level.
If you have questions, feel free to
mail them to me.
Â