21/08/15 – FANG NASDAQ – Another strong potential Short trade with 8/9 of my trade setup indicators in the green after having poor earnings. The wave 4 has found resistance at a previous pivot point during Wave 3, labelled M on the chart, with the 0.5 Fib Retracement level, TJ’s Ellipse and the 89 Day Moving Average all adding to the resistance level. The price action in yesterday’s session took the price near the previous day’s low and closed near that level. I have been conservative with my potential entry, which is below the 6/4 MA Low for today’s bar position and below the psychological $69.00 level. Stop Sell Order @ 68.95 with the Stop Loss @ 74.31, above the Wave 4 high and the M pivot which are forming a technical Double Top. The initial target level is 57.50, which gives a Risk to Reward Profile just over 1:2. As the futures for US stocks are very negative at the time of writing this trade order diary, I must keep an eye on the pre market action for this stock to ensure there will be no potential gap down on open which will spoil my risk to reward.
24/08/15 – FANG NASDAQ – My Stop Sell order was triggered for this trade on Friday with some slippage and so was entered @ 68.88 and therefore I have adjusted my chart below to reflect this. The price closed near the days lows and there was high volume traded for this stock, especially for a Friday. Both these added to the very negative US futures on this Monday morning would suggest the Bearish momentum will continue for this trade. It is also worth noting that the both the Signal lines and the Histogram crossed at the zero line during Friday’s strong Bearish move. Although this is a new trade, I want to give it the same chance as my other Short Trades and adjust the Take Profit Limit Order to a previous support and resistance level. So I have adjusted the Limit Order to 52.00, which is just above the Wave 5 low of December last year. And like the others I will look to manage with a Trailing Stop until there are signs of the Bearish correction in the markets running out of steam. Chart as Below.
01/09/15 – FANG NASDAQ – Although this trade was less mature than OMC and PBI, I decided to close this trade at the same time as the others due to the market volatility not allowing momentum to build with this short trade. A small but positive profit of 0.5% on my trading account balance. Chart as Below