Today I shorted UAUA at 15.30. The trade is already up green 2% (today alone).
TARGETS
More details later perhaps, but IF 14.92 can be broken and sustained lower, the targets are 14.17, 13.81, 13.29, 13.01, 12.16, and even as low as 8.11 (after some up and down of course).
I usually don't short stocks that have GAPPED UP like UAUA did on Tuesday. (Because gap ups that hold are bullish. But of course there are bearish exhaustion gaps, etc). However, this presents an interesting opportunity. Right now I am trading the pullback, but this could turn into a very lucrative longer period trade as well (3-21 days).
On the 60 minute chart, the Uptrend line was broken lower, and it did not even backtest. It gapped down today (unfortunately, since I had identified UAUA last night as a stock I wanted to short, if it didn't gap down I would have gotten a better price.
IF the 60min RSI can get below 33, that would present more downside and would probably confirm a 60 minute downtrend (not a daily downtrend). In that case I would be looking for a lower high and lower low. The 20 and 50 MA are about to do a bearish cross. Yes the stoch in 60 min has been under 20 for awhile, but notice the MACD hist still is pretty low. It IS starting to possibly tick up higher, so we will need to watch this for a possible exit and re-entry if validated.
However, the DAILY histogram is DECLINING which is bearish, and has not even crossed below 0 yet. So there is potentially much more downside.
I'll revise the targets later for this, some are posted in the "Daily ramblings" below for Thursday. Just wanted to throw these out there quickly.
TARGETS
More details later perhaps, but IF 14.92 can be broken and sustained lower, the targets are 14.17, 13.81, 13.29, 13.01, 12.16, and even as low as 8.11 (after some up and down of course).
But one step at a time. Right now, I'm trading this as a swing (2-5 days) and see what happens from there.
60 Minute Chart 1 - double click to see whole chart, enlarged
DAILY Chart 2 - double click to see whole chart, enlarged
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"Disclaimer".
ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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