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Feb 21, 2020
2:55:43pm
kapcreations All-American
It depends on the trade

For the most part, I use technical analysis to exit trades.

The stock had a high of ~45 back in April of last year and sank to $35. It has based between $35 and $38.50 since July/Aug 2019.

If the stock gapped down below $35 and the associated 200MDA trend that shows on a weekly chart, I'd buy the gap down as it would probably rally back to test resistance and try to make a few dollars.

If it couldn't break and maintain $35 after gapping down, I'd be ready to sell the rest.

On the other hand, If I bought today, I'd have a pre-established sell at $37 or thereabouts.

I really don't like the weekly chart.

Why? There were three attempts to break $42.50 (5/18, 10/18, 4/19). All three times it sold off to test support at $35. That's some wild swings.

Further, it has tested the bottom 4 times now, and the stock is right at that bottom.

Buy low, sell high? Some may be tempted to buy at the base. But the stock gapped down (8/19), made lower highs around $38.50 (9/19, 11/19, 1/20), and did so in an ascending channel. It gapped below that trendline (end of 1/20), and has set up in a pretty strong bearish triangle (4/19 - current).

If it breaks down, it will probably test $27, which I see as a lot more likely than $39.

2020-02-21-15-52-45.png

kapcreations
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kapcreations
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