For those in or just watching the NTRI short, I have now brought the short to a full position. Since the last post, NTRI has given the “confirming” MACD sell signal (bearish MACD cross-over following the RSI drop back below the 70 level… see prior posts on this trade for details). We also have one last final confirming sell signal today as NTRI is breaking below the bear-flag pattern.
I am also adding the targets as follows: T1 (first target) at 7.30 and T2 at 5.75. Again, I plan to play NTRI as a long-term (multi-month) swing trade and although my current preferred target is T2, these targets can & likely will be modified going forward depending on the price action of both NTRI as well as the broad market. As the entry on the trade was suggested as a gradual scale-in (shorting partial lots at different prices) anyone in the trade should set stops according to their own average cost, price target(s), trading style and risk tolerance. Personally, I am now lowering my stop from the previous stated criteria of just above the top of that overhead gap, to about the middle of the gap (to allow for a slight overshoot on a backtest of the bottom of it) around the 9.30 level, with stops to be adjusted lower accordingly if the trade continues to play out. Updated daily chart above.