This Is Why You Should Pay Attention To A Long Tail

Alliance Data Systems
(ADS) closed at a resistance level
last Friday after pulling back
from the June 8 low. Notice pullback was accompanied by weak volume. We are
looking for a resumption of the downtrend.

09:57:22 (from TradersWire)


Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Sell

ADS sell stop at 36.98 at resistance level (daily) 37.13 36.60 37.05

TK

Let’s look at the 3-mininute chart
from this morning. Shortly after 9:45, ADS formed a bearish tail at the upper
Bollinger band. This was a sign of weakness. Also, as you can see, the
stochastic was showing a negative divergence. I could have sold the stock right
away, but I decided to place a sell stop just below the middle band.

10:07:54

Follow upon ADS

Cover half to take a 20-cent gain. Move stop to breakeven.

If you have questions, feel free to
mail
them to me.