The WMT active short trade, which recently hit the first target, is once again offering an objective short entry or add-on as it has bounced to just below resistance. I would consider a stop just above that next horizontal resistance level shown on this updated 4-hour period chart. A stop above the 71.70 area would provide the necessary buffer over that resistance level to avoid being taken out on a brief spike above. This would provide this trade with about a 1 point downside vs. a 8 point profit potential to the next target (T1), an excellent R/R of 8:1. Of course the higher the R/R does not mean that the trade has a higher probability of success, only that the amount of expected loss, if wrong, is much smaller than the amount of expected profit if the trade is successful.
