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.