Knowing when to say enough is enough in a trade is crucial to trading success. But are you using the type of stop I am discussing in this video?
All else being equal, this to me looks like a breakout to the upside is not too far away… one that could take it into the $165-$170 area without too much effort.
The way I see it, active investors and traders have two trade opportunities here.
Although it may be overbought from a short term perspective, in the big picture analysis it may just be getting started for a better rally.
Since last week’s earning report it’s continued to grind out for a potential breakout on the charts.
Active investors and traders could now look to trade it at $45.50 or lower to the short side with a next downside target at $42.50 while any strong bullish reversal on a daily closing basis would serve as a stop loss signal.
This sets up well-defined trades to the short side for active investors and traders.
Its post-earnings reaction points to lower levels still. I see this as an opportunity to leg into new swing trade short positions.
From here, traders could look to enter new long positions for a play higher into the high $180’s.
The picture remains solid to hold the stock for a move into the high $30’s.