This Is Why You Should Watch Prior Resistance Levels
Electronic Data Systems
(EDS) closed right at the 38.2% retracement level yesterday. As you
can see below, the stock is in a pullback from the June 9 low.
10:27:18 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
EDS | sell stop at 19.24 | pullback from low (daily) | 19.39 | 19.09 | 19.29 |
TK |
Now let’s see the 5-minute chart
from this morning. The issue was forming a resistance line at 19.26. Once a
resistance is taken out, it can be a potential support level. My plan was
simple. If the stock bounces off this level successfully, I will be a buyer. If
the issue breaks down below the level, I will be a short seller. EDS chose a
breakdown.
11:25:50
Follow up on EDS
It has hit our target. Adjust your stop, or cover all shares.
If you have questions, feel free to
mail them to me.