Why You Should Pay Attention To The Opening Price
As you know, weak stocks often form a
bear flag before resuming the downtrend. Needless to say, a breakdown
triggers a sell signal. But the problem is it is too hard to sell short when the
stock is breaking down. What should we do?
10:11:34
Alert
Analog Devices (ADI) is touching the lower
boundary of a bear flag. ADI is down 0.94 at 39.33.
Now let’s look at the 5-minute chart of ADI. Do you
see the gap? This is a big clue that the stock is in trouble. In stead of
waiting for a breakdown on the daily chart, you can get a head start by
utilizing the 5-minute chart.
Pay attention to the opening price.