Ka-Ching! Well, Traders, I pulled the plug on CHL this morning at $49.25. To be frank, I got lucky. I felt that a pullback was near, and today's premarket confirmed my suspicion as the stock was down $2.15. It ended up rallying a little bit before a HUGE selloff probably spurred on by profit-taking. Check out the volume!You will also note the prominent "Evening Star" candle formation, which I have highlighted in yellow. this signifies a short-term Bearish Reversal, which is confirmed by the MACD and STO both falling.
Anyway, let's keep this little baby in our back pocket ready to buy again once it bounces. At this point, we may see it bounce at the $45 level, which was the top of the Ascending Triangle formation. Let's let the MACD and STO come back to us, be patient, and strike once the stock comes back to us.
Happy Trading!
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