Wednesday, January 10, 2007

Day Trade: Short HMIN 30-min chart


  • The stock is active with strong downward momentum and confirming volume
  • Short entry at $36.97 on the break of the low of the 6th cstick
  • Initial stop at $37.17 which is the high of the 6th cstick
  • Covered 500 shares at $37.25 when position was stopped out with some slippage
  • Trade closed with a loss of $140 ( -1.4R )

In retrospect, this trade is a not really a perfect short set-up because the daily chart shows a very strong support at $36 which could explain the 2nd HAMMER cstick above.

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