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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Quiveringtrader who wrote (12566)	5/16/2007 7:33:09 PM
From: chowder	Respond to of 13449

AGU is setting up a short to intermediate term short sell opportunity. Price was in an Stage 2 uptrend and peaked out in April. We saw a price correction from $42.50 all the way down to $36.00. We now have the 20 day moving average on the verge of dropping below the 50 day moving average. This could be the early stages of a Stage 4 down trend. Price has rallied off the recent lows. The recent price rise has been on lower volume. This has bearish implications. Since price is now below the 20 and 50 day moving averages, the odds are that we will see price pull back on the first test of the 50 day moving average. Short term professional traders are taught that the first test is the best test to short, just as the first test from the bullish side is the best test to go long. The low risk entry is to short under today's low of the day. If price moves up tomorrow, and the trade does not trigger, then shorting under tomorrow's low will be the trigger point. Entry target $37.85. Profit targets $1.50 - $3.00. Initial stop loss $39.50.