The OSTK (Overstock.com) swing trade entered last Wednesday was stopped out on Friday for a loss of 9.7% (or a 6.8% beta-adjusted loss accounting for the 0.70 beta-adjusted position size) as the 10:00am 60-minute candle printed a close of 63.80. While I normally avoid taking breakouts on low-volume days surrounding holidays due to the increase rate of whipsaw signals & false breakouts, I thought that the gain potential for that setup as well as the R/R was very compelling & I still do.
OSTK 60-min Nov 27th
As such, while that previous trade was stopped out & will be moved to the Completed Trades category, OSTK will be added as a another Short Swing Trade Setup with an entry to be triggered on any move below 59.80, which will have taken it below the lower-most (blue) uptrend line of the same 60-minute bearish rising wedge pattern. Last week I was using the upper-most/white trendline & OSTK made a brief whipsaw break below but failed to print a 60-minute close below that wedge.
The sole price target will be set at 48.80 again with a stop on any move above 63.40. The suggested beta-adjusted position size will also be 0.70 on this trade as well.