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OSTK Swing Trade Testing Support

OSTK (Overstock.com), which is the only official Active Short Trade right now, is currently testing the 78ish support level which is also the bottom of this descending triangle pattern (yellow lines). An impulsive break below that level would likely bring the stock down to the 70.80ish support, where a reaction is likely, followed by another thrust down to the first target at 61.70.

OSTK 60-minute Jan 12th

OSTK 60-minute Jan 12th

As this trade is currently profitable by about 10%, this support level, as well as the 70.81 level, could be used to book partial or full profits as the trend in the broad market is still clearly bullish. As of now, my expectation remains for at least another 22% downside in OSTK to the first price target before any substantial & lasting counter-trend rally although I will continue to monitor this trade closely, revising the profit targets should the technicals change.

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2018-01-12T15:06:53+00:00Jan 12, 2018 3:06pm|Categories: Completed Trades - Short|Tags: |5 Comments

5 Comments

  1. rsotc January 16, 2018 10:15 am at 10:15 am

    Nice gap down below support which is bearish as that traps a lot of longs that were planning to stop out on a move below the 78.12 support as well as denying an optimal entry for those wanting to take a short on a break of that well-defined support level. The 78.12ish level should now act as resistance & provide the next objective short entry or add-on, should OSTK bounce back. If not, next support to watch is the 70.80ish level.

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  2. actonwang01 January 22, 2018 11:37 pm at 11:37 pm

    Is this trade considered over as OSTK was traded over 80 mid of today though it was turned down end of session?

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    • rsotc January 23, 2018 10:46 am at 10:46 am

      No. The suggested stop on the OSTK short trade was & still is any move above 96.80 as listed in the original trade setup & entry: https://rightsideofthechart.com/ostk-swing-trade-idea-2/

      In this last update I mentioned the 78.12 level as a significant former support, now resistance level & although the stock moved back above that level, this trade is still profitable & still looks promising although it is taking longer than expected to play out so far. Seems to me that the cybercurrency bubble may have popped although I may decided to revised the final target to T1, eliminating T2. If so, I will post an update but for now, OSTK remains an active short trade.

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  3. Urooj January 25, 2018 5:23 pm at 5:23 pm

    Randy, beautiful call on OSTK!
    Are you going to share your thoughts on OSTK in light of todays down action?

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    • rsotc January 26, 2018 12:56 pm at 12:56 pm

      Not much new to report on OSTK. The stock continues to work its way lower following the Jan 8th divergent high but still has some more downside to go before hitting T1. I don’t get too excited on the big down days as that is the nature of this extremely volatile stock: Down big today, up big tomorrow. As long as the trend remains bearish (i.e.- lower lows & lower highs), the trade looks fine. Need to see the Jan 17th lows taken out now & ideally for the stock to remain below the Jan 22nd reaction high.

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