due to the almost laughable cash infusion deal from SoftBank (who's stock has been getting hammered since announcing such a horrible investment into S), i am going to close the trade here for a 24 cent loss. the stock will most likely trade in a range here for a while so while S came very close to hitting the first target zone, best to close this one out for a loss & redeploy those funds elsewhere. S will be moved to the completed trades category here at the current price of 5.74. original and updated chart below.
the S short is playing out quickly so make sure that you've identified where you plan to take full or partial profits if you took the trade. my preferred target at this time is T1 and depending on how things look if/when we get there, i might remove the remaining targets and complete this trade. until then, here's an updated daily chart along with a 120 minute chart showing a few support levels/potential targets.
upon further review of the S short trade posted earlier, i have revised the targets as shown on this updated chart. the new targets are T1 zone at 4.71-4.61, T2 at 4.25 and T3 zone from 3.89-3.74. target zones are used when there isn't a clearly defined support or resistance level, or multiple levels exist in close proximity. i typically preferred to take full or partial profits just above (below) the target zone on shorts (longs), although i may shoot for the other end of the zone at times, depending on market conditions. the suggested stop on this trade remains on [...]
S was a recently a highly successful long trade, closed in mid-july for a 60% gain. since then, i have posted a couple of short setups on the trade which were stopped out (obviously for much smaller losses than the previous long trade. once again, i think S offers a very good R/R short entry here as it is breaking below both this longer-term uptrend line (in yellow) as well as this shorter-term rising wedge pattern, complete with negative divergences in place below. i have marked the targets on this trade and plan to follow up with some suggested stop criteria [...]
in reviewing the active trades category, i've noticed the following trades have been completed and will be removed from the active trades category: [...]
S was a recently closed very profitable long, then a short trade about two weeks ago. the short trade was stopped out as per the suggested criteria but once again S looks like an objective short entry as it has now filled that very large gap from late july 2011. targets marked on the daily chart below.
so far we have what looks to be a confirming candlestick to yesterday's hanging man candlestick on the S short trade. the hanging man is a potential bearish reversal pattern that needs to be followed up with a confirming stick, such as this bearish engulfing candlestick. as we still have 3 hours of trading left in the day, this sell signal is still not confirmed yet but S does close at or below current levels, then this pattern will be confirmed and would significantly increase the odds of this short trade hitting the final target (T2), about a 15%+/- gain.