Peter,
So much depends on targets and timeframes. Maybe shorting it could work for you, but it wouldn't work for me for a number of reasons.
First, on a longer term chart, RRI is still in an uptrend. Second, what would be the target and the risk reward? Strong support at 8.80, resistance (tested several times) here at 9.80. What are the odds that you are right and you make $1, versus being wrong and it takes off again.
Third, I want considerable reward, in terms of dollars, so I want to look at higher priced stocks. A $10 stock isn't going to reward me the way a $50 or $60 stock will.
For me, shorting (actually buying puts or put spreads) I like to have a big bunch of air underneath, a weak stock which has already failed at a top, or even two, and at least a 2:1 or 3:1 profit:loss ratio in mind.
STRA is a good example, with support at 100 and 90, a downtrend and money flowing out of the stock. It's in a weak sector with lots of ugly brother and sister stocks there.
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