If at first you don’t succeed, try again. OSTK (Overstock.com) has hit the sole price target of 48.80 for a quick gain of 18.4% in less than 3 trading sessions.
OSTK is a good example of sticking with a trade when the charts are clearly bullish or bearish, of course the latter in this case. OSTK was added as a short trade last Wednesday & as is often the case during the low volume trading week surrounding the Thanksgiving holiday, that breakdown proved be a whipsaw signal with that trade going on to be stopped out shortly after entry. However, when the traders returned on Monday, OSTK went on to trigger another short entry, this time using a revised (slightly lower) trendline in order to decrease the odds of any false breakdown.
While I do think OSTK is headed lower in the coming days/weeks, the odds for a bounce off the 47ish level, which is both price support as well as the 38.2% Fibonacci retracment level on the daily time frame, is quite high. In fact, I just went long OSTK off that level for a quick bounce trade after closing my short position out at T1 earlier today.