Short-Selling with the O'Neil Disciples by Morales Gil Kacher Chris & Chris Kacher

Author:Morales, Gil, Kacher, Chris & Chris Kacher [Morales, Gil & Kacher, Chris]
Language: eng
Format: epub
ISBN: 9781118970980
Publisher: Wiley
Published: 2015-04-27T00:00:00+00:00

Figure 4.27 Exone Company (XONE) weekly chart, 2013–2014. XONE forms a POD that is also a wide, loose, and sloppy late-stage failed cup-with-handle base.

Source: Chart courtesy of HGSI Investment Software, LLC (www.highgrowthstock.com), ©2014.

Figure 4.28 shows how the entire POD unfolded in detail, and one might surmise that there are three possible short-sale points in this overall formation. We have to remember that every POD pretty much begins its life as an LSFB, and XONE is no different in this regard. The stock attempted to break out in the first half of September 2013, but it immediately gapped down and failed. At this point, one could have looked at this as an LSFB short-sale set-up and attacked the stock on the short side on this basis. In this case, one could have used the rally back up to the breakout point at the end of September 2013 as a short-sale point, using the multiple stalling days up around the 72 price level as an indication of weakness in the stock at that point. Once two or three of these stalling days are seen in a row, one can then use the intra-day high of one of these days as a guide for an upside stop. From there, the stock broke down very quickly.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.