Another Swipe at ADSK
Here's a nice, clean trade for you.
ADSK collapsed through its long term ascending trendline last November. Now, nearly four months later, it's retraced to the upper resistance of its descending channel.
Shorting this - or buying puts - with a stop above $42.25 seems like a good trade to me.
3 comments:
LOL. Interestingly I though I'd seen this stock somewhere else today... Market Wrap highlighted this one slightly bullishly. Sighting the good earnings announcement today as a reason for the Dow's good fortune. ;D I'm not totaly sold on this one as a short play yet. :D
Very interesting chart. Seems strange to make a bearish call on such a bullish move of a day with big volume. Nevertheless, I agree with all your lines and take your entry here to be more about a great entry with regard to a clearly defined line of resistance and therefore a very tight risk allowance for the trade. I'm definitely learning about "clean" trades from your postings. Thanks so much.
On another subject, here's a question: As a pure technician, one might not feel the need to pay attention to the news of stocks in their portfolio. Do you make an effort to read the news every night on your holdings? Furthermore, how many stocks do you feel comfortable being in at once? Does the pure technical approach make it much more realistic to have more positions open at once?
Wow, if this short recommendation is as good as your AAPL, NTRI, and OIH short recommendations then I am in for a treat.
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