This Is Why You Should Pay Attention To Old Support Lines

The S&P 500 is trapped
in a narrow 4-point range
this morning,
but as you can see below, the rising channel is still intact.

10:31:13 (from TradersWire) The clock is
three minutes fast.


Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Sell

CHKP sell stop at 19.74 pullback from low (5-min) 19.87 19.62 19.76

TK

Check Point Software (CHKP)
broke down below a support line shortly after 10:00 on big volume. Notice the
stock also fell below the lower Bollinger band. I decided to wait for a
pullback. After I saw CHKP failed to move above the 38.2% retracement level, I
placed a sell stop at 19.74. But, the stock declined only 5 cents and reversed
to the upside.

A better selling opportunity came at 11:00 when the stock challenged the old
support line. Notice the stochastic was in the overbought zone.

Good luck with your afternoon trade.

T.K