Hi Reid,
Here's a great short candidate. Note the 50 ema, where AMD is showing signs of again failing the test of resistance:
AMD
139.142.147.218
Note also what happened at the 200 sma:
stockcharts.com[w,a]daclyyay[dc][pb50!b200][vc60][iLg!Lp14,3,3]&pref=G
Sandi, hope you see this one.... a failure at the 200 sma on a monster gap down on huge volume, followed by a dead cat bounce and a classic bull trap right through the 200 sma. Notice that AMD formed a high above the 200 sma at the downsloping 50 sma, and was turned back. Then, it found support, but has failed to take out the first high above the 200 sma. Now it is again testing resistance, but this time from two sources: the downsloping 50 sma again, and also chart resistance. Today it formed a narrow range candle signifying reversal. It is extremely likely that AMD will get turned back right here, and a print below $17.45 would be the short entry IMHO.
This is about as good as it gets, particularly with the market looking poised for another leg down, and for the final bit of evidence, here's the chart of the $SOX:
139.142.147.218
I'd say all the planets are aligned here, and $17.44 is the short entry.
T |
