NTAP: Today's Study Case
In last night's Sage Advice Newsletter, we said:
"NTAP failed its 2B test of top. Yesterday, we said that the question is if it will be sold down to the 50-day MA below at 118, Target 2. Target was accomplished today and now all eyes will be on the uptrend line at not far below."
This is the daily chart that we included in the newsletter:
ispeculator.com
I find that most Nasdaq stocks are easier to "see and trade" off setups off a longer intraday timeframe, such as the 15M chart, and this morning, after the first hour, it formed a harami pattern on the bounce to set up a Grail Sale, which is a sell signal after a failing bounce in an established downtrend.
Harami Pattern: ispeculator.com
Holy Grail Set up: ispeculator.com
So the short sale is made on break of $119, the low of the 4th 15M bar. ispeculator.com
The initial stop loss is placed just above $119 3/8, the high of the bar at the time you entered the trade. This is an aggressive stop, but I hate losing money. No matter what, by the time the day's low (Target 1) is taken out you must move your stop to breakeven or better to protect profits, and just follow it down from there, probably using a 5M chart. ispeculator.com
You would still be holding short here, just moving your protective stop down and down and down. ispeculator.com
On the daily chart, you can see that the blue uptrend line has now been breached, and the last swing low before the test of top, made on October 9, has been broken. So all the immediate targets off failed 2B test of top made on Oct 20 have been fulfilled. ispeculator.com
Now the question is if it bounces, will it be a failed one, and NTAP enters a downtrend?
Teresa |
