Home > Swing Trade of the Week > COST sell short

COST sell short

swing.jpgThe futures are negative this morning, one day before FOMC. Since we are trading lower pre market here, I decided to focus on potential shorts.

The retailers as a whole have been weaker during this bull run. The set up here is a bear flag that has met resistance on TWO time frames. Those of you that have taken our Equity Trader 101 course are well aware of how important multiple time frame analysis plays into our decision making. In this example there are two sets of market participants “seeing” a significant point to take action, the 20sma and the 50sma.

THE PLAY HERE: sell short COST with a sell stop limit @$53.80, with an initial stop loss at $54.40. Initial support expected @53 with a profit target of $51.50.

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