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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (7369)	4/5/2005 8:09:22 PM
From: Walkingshadow	Read Replies (3) \| Respond to of 8752

<<RWNK is forming that top I discussed yesterday. Time to book profits. >> Or... for those of us not long RNWK, a short position is reasonable to consider. However, this is somewhat risky because RNWK is in an uptrend and likely to break to the upside and test $7.00 soon (exactly when I cannot say). But I am impressed with RNWK's cyclic history, so a short down to a target exit of the lower BB is worth considering, especially since this market has pretty shaky legs right now. 139.142.147.218 Note also that RNWK doesn't linger in overbought territory long. Also, a short position here gives one the possibility of capitalizing on a possible breakout to the downside. I think this is unlikely, but not impossible. The daily chart above is pretty clear, but on the intraday chart RNWK has still not decisively failed at the 40 ema, and is retesting that region from below. The technicals on the intraday chart below also indicate a bit more upside will be in store for RNWK before we see RNWK sell off; my guess is that there will be some retail buying early in tomorrow's session, then selling in the afternoon.: 139.142.147.22 If I short this (likely), my strategy will be to keep the stop very tight as the lower BB is approached, anticipating a reversal to the upside (for which I would be prepared to quickly flip from short to long if intraday resistance is challenged and broken). If by chance support is broken and RNWK falls out of the trading range, I'll be along for the ride unless my stop gets hit on intraday volatility. If support holds and RNWK reverses near the lower BB, I'll get stopped out with a profit. That's just my plan, I'm sure there are many ways to skin this cat. T