Shared by
johnc_BOWS
I went short here but ironically I had originally flagged this as a long position because it looks like it's forming a giant flag on the daily chart. Go figure.
I'm still figuring out how stocks act around trendlines on longer timeframes (in this case the daily). Traders and investors clearly use them, but I'm still getting the hang of seeing how stocks behave when the approach or break them.
In this case, I was alerted by TC2000 that LAZ broke its long-term trendline. I looked at it and it looked like it was bear flagging. I shorted it, thinking that it would continue to fall.
However, it essentially formed a double bottom from the previous day's price action, and so it ended up actually being a decent long position because:
- Double bottom
- Bounce off trendline support
Finally, I shorted the stock, even though it is actually still technically in an uptrend. The daily chart is forming a big flag. It could really go when it breaks this flag, so I'm keeping this on my list.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-12-05 11:48:22 | LAZ | sell | $40.750 | short |
| 2013-12-05 11:48:32 | LAZ | sell | $40.750 | short |
| 2013-12-05 11:57:08 | LAZ | buy | $40.820 | short |
| 2013-12-05 11:57:08 | LAZ | buy | $40.830 | 0 |
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Biggest thing that sticks out to me is intraday was extended and oversold. When you combine that with the 41ish support on daily this should have been passed on.