Following a short reprieve from highlighting short trades, where I highlighted a great looking long trade in HMSY, I return today to anothe great short opportunity.. this time in Ashland (ASH). The stock has carved out a classic short trade setup where the stock takes out key support levels with huge selling volume, followed by a weak bounce up to test new resistance. The short entry occurs when sell volume begins picking up again to the downside, just as it did on Monday. The stock has pushed higher over the past two days but I think that just offers an even better entry for this outstanding looking short trade.
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Hallmark of the 11 Month Rally Returns - Weak Volume on Strong Upward Days
(Fund my Mutual Fund, 2/17/10)
Low Volume and Little Interest On Stocks
(Short-Term Trading, 2/2/10)
No Change In The Regime: Volume Dismal In Yet Another Green Day
(Phil’s Stock World - Members S..., 2/22/10)
WHERE’S THE VOLUME?
(THE PRAGMATIC CAPITALIST, 3/1/10)
Filed under Stock Trade of the Day by Tate Dwinnell
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