first short

[CharlieStock]

Hi,

I'm looking for validation on a trade I would like to make.

This is my first "real" trade, I've made several trades before but there was no method, just blind speculation that the stock would rise. I was right in most cases but only because I held the stock in question and I checked price everyday so I knew the trend.

Anyway, this is my first post so I've omitted what stock I would like to short, I've attached a screen shots of a 6month chart showing the trend.

My plan is to short the stock @38cents

T.A, stock is trending up, way above the EMA, has broken through upper band.

Stock has just announced results in march, profits are up but nothing major. Its already had a nice rise since then, i think its due to turn around

I can post the name of the stock if more detail is required.

Thanks
C

 

[paszkman]

why is it due for a turnaround? I am guessing this chart is on a daily timeframe? some people would want to see a a MACD crossover to the downside first. Or some bearish price action. So far it looks like MACD still trending up and a big green candle, which would be bullish. What is the EMA you have put? 20?

 

[malaguti]

Hi,

I'm looking for validation on a trade I would like to make.

This is my first "real" trade, I've made several trades before but there was no method, just blind speculation that the stock would rise. I was right in most cases but only because I held the stock in question and I checked price everyday so I knew the trend.

Anyway, this is my first post so I've omitted what stock I would like to short, I've attached a screen shots of a 6month chart showing the trend.

My plan is to short the stock @38cents

T.A, stock is trending up, way above the EMA, has broken through upper band.

Stock has just announced results in march, profits are up but nothing major. Its already had a nice rise since then, i think its due to turn around

I can post the name of the stock if more detail is required.

Thanks
C

looks to me like its just broken out after long resistance, wouldn't be shorting that one

 

[Atilla]

looks to me like its just broken out after long resistance, wouldn't be shorting that one

Agree strongly.

Not only that but about 10 bar prior, there is a big spike in volume which is no doubt where the smart money got in before the release of good news.

Wouldn't be shorting this one either.

What's the news, p/e and div stats?


Silly to just trade off a chart. There are three variables to consider;

1. Fundamentals
2. News
3. TA

If you are prepared to show company name why hide it? :whistling

Strange confused person that you are

 

[tomorton]

I have found that trying to capture reversals - buying at the bottom, shorting at the top - has a low probability of success. The reward if you are right can be very significant but usually you will be wrong.

Usually, a price that is in a trend continues in the same direction. I always wait for price to show me its direction and establish or re-establish a trend before going in. When a price makes a new high, that is no reason on its own for it to reverse and start a downtrend.

 

[alexaherself]

My plan is to short the stock @38cents

Why? I would rather buy it at $0.38, myself. (Maybe we can do a direct deal, and "cut out the middle man"?)

i think its due to turn around

Why do you think this, though, Charlie, when the chart seems to suggest the opposite, if anything??

 

[CharlieStock]

Hi,

I omitted the name of the company because I didn't want it to look like I was trying to sway people as it was my first post.

I wanted to short because historically after this share reached new highs due to positive financial results there is a reversal due to profit taking.

I've attached a new chart with the company name included. As suspected there was a reversal. I didn't trade it but.

 

[alexaherself]

historically after this share reached new highs due to positive financial results there is a reversal due to profit taking.

Well done, then. Please excuse the observation that that highly relevant fact is perhaps rather more significant than anything on the chart you originally provided.

 

[VeerTrade]

If you are a technical trader then I would only be shorting if looking for a possible reversal.