Important note: There does seem to be a topping pattern at play here. If my long strategy proved wrong and the stock did hit my stop and continued below $24, it would make for a low risk short entry.
Wednesday, October 11, 2006
Chart: SINA
One stock at the top of my watchlist is SINA (sina.com). The stock is pulling back on low volume after a high volume breakout. Note that the 50 day moving average is about to cross over the 200 day MA. The last time this happened the stock gained three points in a short time frame. The stock was pulling back after a breakout at that time as well. I may enter now, as I see an entry with a stop below just below the crossover point, say $24.20, as a low risk trade.
Important note: There does seem to be a topping pattern at play here. If my long strategy proved wrong and the stock did hit my stop and continued below $24, it would make for a low risk short entry.
Important note: There does seem to be a topping pattern at play here. If my long strategy proved wrong and the stock did hit my stop and continued below $24, it would make for a low risk short entry.
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