Sears SHLD Surges from Lows Dec 29
Thu, Dec 29, 4:11 PM ET, by Corey Rosenbloom
Are you an aggressive trader who loves to call bottom reversals? Want to try your hand at a fade trade?
Today, Sears Holdings (SHLD) – a stock in a massive downtrend – is attempting a bounce off the lows.
Let’s see it and note what levels to watch for a trade or for an educational example:
First, I am NOT a fan of counter trend ‘fade’ or reversal trading strategies.
Second, you’re a different trader than I am.
Fade or short-term reversal (counter-trend) trades do have a place in a growing trader’s arsenal.
Let’s look at two similar bounces or downtrend ’snap’ trades in SHLD.
The prior two examples took place in September and October 2016.
The main idea is to identify a trend in motion and pinpoint a stock extended “away from” its 20 day EMA.
Generally the market will snap-back like a rubber band and move “up away from” its lower Bollinger Band “toward” the falling 20 – or 50 – day Exponential Moving Average.
Yesterday gave us a bullish reversal candle after a series of down days in a row too price to $8.00 per share.
Will price continue the current bounce and rally “up toward the $9.50/$10.00 level of the falling 20 day EMA?
That’s your aggressive counter-trend fade-trade opportunity!
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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SDI Glossary: "Trend" Definition
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