
when closing a position at a predetermined target, i prefer to set my limit order to sell a long (or buy-to-cover on a short) slightly below the target/resistance level (slightly above the target/support level) as to avoid missing a fill if the stock reverses right at or just shy of that level. on the flip side, i prefer to set the stops on my longs (or shorts) just below a support level (or above a resistance level) as to avoid getting my stop hit just before the stock bounces off that level or makes a very slight overshoot before bouncing.