KMX Trade on Dec 27, 2013 12:18 from johnc_BOWS: Tradervue User Stock Trades.

2/9: This was a decent trade, but it was a bit of a chase. I understand my logic at the time though. I thought that 47.10 might be a support level, so I waited for it to get broken.

However, shorts can setup based on supports or resistance.
1. Support (e.g. base breakdown)
If a stock is holding a specific price level, but then breaks below that, buyers will jump out because they don't know how low it's capable of falling.

1. Resistance (e.g. double/triple tap failure or MA failure) If a stock climbs without rest or without strong volume, the climb will often be unsustainable. So once the stock hits a resistance level and the resistance proves to be too strong to overcome, buyers will give up and jump out.

In KMX's case, price failed 47.30 and then dropped. It consolidated and then failed to get above 47.20. I could have shorted on that doji that was unable to get above the 20ema, at 47.15, with a stop above 47.22 or 47.25. That's a 30-40 cent trade with 700 shares.