Strictly Buy and Sell Set Ups Message Board

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Strategies & Market Trends : Strictly Buy and Sell Set Ups

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From: chowder	5/15/2007 10:21:01 PM
	Read Replies (3) of 13449

TTEC is showing a text book low risk, high probability short sell set up. Yesterday saw price gap down below the 50 day moving average. Price continued down all day and closed down almost 10% on the day. Selling volume was huge! This was confirmation of professional selling. When you see professional selling, they usually aren't finished. They will usually sell off into any rallies. In the chart below, note the area marked in yellow. This was an area of price support and yesterday's candle took out the entire section in one swoop. That's as bearish as it gets. Price tried to rally today as the buy the dippers came into the market, but they lost control of price movement. Although price gapped up at the open and moved higher, the bears grabbed control and price closed below the opening price. This is another sign of weakness. The last 2 day pattern has now formed what is known as a Bearish -123 pattern. This pattern involves stocks with the following 2-bar setup on their weekly charts. Bar 1 is a very bearish weekly down bar which suggests more downside to come. Bar 1 is immediately followed by Bar 2 which is a relatively small narrow range bar that has traded in the bottom 1/2 of Bar 1, without trading below Bar 1’s low. This 2-bar set-up establishes a mini double bottom that if traded below could lead to lower prices. Entry target $33.74. Profit targets $1.50 - $3.00. Initial stop loss $35.20. This pattern is compelling enough to take a larger position than is usually taken on most intermediate term trades, as long as you stay with the profit and stop targets.

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