i had high hopes for this one but also suspected that the odds were probably against it playing out since as i stated in the original post on the set-up, that the market would need to cooperate (meaning go up, not down). as the old market saying goes; “All ships are lifted in a rising tide” and the corollary to that statement would obviously be that “All ships (stocks) drop with a falling tide”. obviously, not meaning “All” stocks literally but more often than not, long-side break-outs are prone to fail when the market is falling and vice versa.
sooner or later, FSLR will likely get an oversold bounce/short-squeeze so i will continue to monitor the charts for another potential re-entry although i am now moving it to the completed trades category. for those longer-term swing traders or anyone else that took the trade and want to give it some more room, consider a stop just below the $20.00 area. when placing stops below recent lows, i usually won’t place my stop-order just a penny or two below as the market makers and powers-that-be will often spike a stock just below the lows in order to run the stops, taking those shares and then gunning the stock higher. best to place your stops just a little more, but not too much, below the support area that you think most other traders (and market manipulators) are eying.
here’s the updated chart showing the first (tight) objective stop area, which was the point of entry/break-out of the falling wedge. the 2nd stop would have been just below where we re-tested the wedge yesterday. sometimes stocks will continue to re-test lower and lower before bouncing but preferably, i like to see the stock bounce and not look back after the first re-test. not always but often.
