TOWN short trade on trendline break
TOWN broke its recent upward trendline today, creating a short trade possibility with a small risk and high reward.
Factors leading to the decision:
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
Factors leading to the decision:
- Major trend is down
- Minor trend was up, and today price broke and closed below it
- 20-ma was recently lost, pulling moving average traders off the sidelines
- The recent high fractal pattern is also at the 20-ma and offers a perfect technical spot for a tight stop
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
Trade closed: stop reached
This trade was stopped out for 1.3 points
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