a couple of ways to trade MA:
the long-side; currently, prices have fallen pretty sharply down horizontal resistance so a bounce is likely here for quick/day-traders, assuming the intraday charts confirm an entry. for swing traders, one might want to wait until MA makes the next tag of that rising channel, which would be my preference over trying to catch a falling knife right here.
on the short-side; simply wait for a confirmed break-down of the channel for a short entry. i will often short a 1/2 position on the big pattern breakdowns like this and add the other 1/2 if the stock moves back up to re-test the channel from below, or if the selling intensifies after the breakout and a re-test does not look very likely. as always, where to place stops depends on many factors, including your risk tolerance, entry price, etc… but typically if shorting the channel break-down, a tight stop can be placed just above entry or a more liberal stop on a solid close back above the rising trendline.
