Wednesday, December 03, 2014

Chart of the Day: Zillow

A great swing trading strategy is finding broken down stocks that are ready to reclaim a previous uptrend.

Z was a momentum favorite that broke down a few months ago.  When a momo stock breaks down, I keep it in a special focus list in case the stock remounts a trend line and continues the uptrend.  Z is in that breakout-remount zone now and is consolidating above the moving averages.

An entry here (I and many Trade Report members have a position) with a stop under the 50dma and target around $130 offers great reward to risk.  These are the types of low risk/high reward setups swing traders look for.


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