4a – Support for TEK
Sep 26th, 2007 by Trader-15
TEK had 3 lower closing days and approaching support (~28.00) that was set in Jan-Mar 2007 (See weekly chart below).
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This is a tricky stock trading setup. Some points to consider here are that the stock is oversold, broke down on high volume, so it can have a dead cat bounce. If it was a Nasdaq stock I would have liked it a little better, being a listed stock it can keep declining. The price target should be below 30 as the highs back from April and May will become resistance. There is no need to wait for 28.30 for entry. Look for first sign of strength in the intraday chart, if she gives you that, enter and place a stop below the low of that day
No bounce for this cat …. that’s for sure
Stopped out right at the low. Risk (and loss) 0.32 for this trade. A good lesson learnt.