Wednesday, June 29, 2011

Key level: Short

Just a few days ago, I alerted via twitter that would have strong support at 30.80. Since then the stock has risen $1.38--not bad.

Just as quickly, is now high on my list of stocks to short. Assuming the market has 1-2 days left of upside left before pulling back, I like the 32.40 level for resistance. There are 5 factors at this level: the 50MA & 200MA, the 50% Fib and a previous pivot low all within a bear wedge.

This is a high probability short, but if for some reason the market surges I'll be more cautious about taking a position. There is also some resistance at 32.70 and 33.85. 

Update: Today went to 32.48 early in the morning and pulled back. I shorted the retest @ 32.48 before it spiked even higher to 32.65. then came all the way back below the resistance at 32.40, so the level is still working. We'll see what next week brings for this stock.

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