As mentioned in the previous update on the Zillow (Z) short trade, there are still some promising short trades out there right now, despite the recent strong bid beneath the broad market. Z has now triggered the next short entry or add-on to the existing short trade, which recently hit the first target for a 16.4% gain. The stock is now breaking below the dual support level of both the primary uptrend line as well as the recently highlighted bear flag pattern. Short trades are still counter-trend trades at this point and as such, are prone to an increased rate of fake-outs or false-breakdowns. Therefore, one could either short Z here with a stop based on a solid close back above the uptrend line or wait until Z prints a solid close below the pattern.
A static version of the updated chart is posted above with the live chart accessible by clicking here. After waiting for years for TC2000 to roll out the live chart sharing feature, I have finally thrown in the towel and plan to start keeping dual copies of some of my favorite trades and setups on both the TC2000 platform as well as StockCharts.com. TC2000 has a much more user-friendly platform for chart-hounds like myself as I often go through dozens and even hundreds of charts per day and find the quick & simple annotation process of TC2000 far superior to the cumbersome annotation process with StockCharts.com. However, I’ve received quite a bit of positive feedback on the new live chart links feature which up to this point, has only included stock indices, fixed income & commodities charts. Going forward, I plan to share live links to some of my favorite trade ideas but will continue to post updated static charts for quick reference and archiving purposes as well. As always, I welcome any feedback or suggestions via the Contact page found under the Resources tab on menu bar at the top of the site. -RP