Be advised that the NTRI short trade is now within 6 cents of it’s first target (T1= 7.30 vs. current price of 7.34 as I type). As this trade is up nearly 19% from the entry on Jan 24th, make sure to have your limit order to cover in place if you plan to book partial or full profits at T1. My preferred target at this time remains T2 (5.75) as I continue to believe that NTRI has the potential to be a very lucrative long-term swing short. In fact, additional targets might be added to this trade but as this first target level sits just above a key reaction low in the stock, we need to see that level (7.20ish) taken out before the next wave of selling is ushered in. Although a bounce at or near current levels is likely, I plan to hold my full position at this time.
I added some additional notes to these updated daily (above) and weekly (below) charts with some trend indicators to watch for signs of a potential trend reversal in NutriSystem. My preferred stop criteria at this time would be a close above the weekly downtrend line in conjunction with a bullish cross above the zero-line on the PPO . The PPO is very similar to the MACD but often preferable to use on charts with relatively large percentage differentials in the price of the security, securities or indices with large price values and/or when viewing charts over long periods of time (10 yrs+).