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.
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