* Consecutive bear flags - the stock drops and then consolidated before doing the same again * Tech sector is being sold off and this stock has continued to be sold on bounces * Technically oversold but now that it has consolidated for a few days - expect it to continue its march downwards * Stop at technical resistance at 3600 - ideally buy an ITM put and leave till expiry
Comment
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First signs of real weakness and a breakdown from the bear flag. Still too early to say if this will hit the target - however be ready to take some profits below 3350 or so
Trade closed: target reached
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Can take 50% profit at 3300 and let the rest of the position ride towards 3200
Trade closed: stop reached
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Took 50% off lower and the rest now - net net the trade was a loser. Key lessons learnt * Look at longer term picture and try to short stock on the bounce - key is having patience * Take off 50% when in the money