Sears SHLD Surges from Lows Dec 29

Dec 29, 2016: 3:55 PM CST

Are you an aggressive trader who loves to call bottom reversals?  Want to try your hand at a fade trade?

Today, Sears Holdings (SHLD) – a stock in a massive downtrend – is attempting a bounce off the lows.

Let’s see it and note what levels to watch for a trade or for an educational example:

First, I am NOT a fan of counter trend ‘fade’ or reversal trading strategies.

Second, you’re a different trader than I am.

Fade or short-term reversal (counter-trend) trades do have a place in a growing trader’s arsenal.

Let’s look at two similar bounces or downtrend ‘snap’ trades in SHLD.

The prior two examples took place in September and October 2016.

The main idea is to identify a trend in motion and pinpoint a stock extended “away from” its 20 day EMA.

Generally the market will snap-back like a rubber band and move “up away from” its lower Bollinger Band “toward” the falling 20 – or 50 – day Exponential Moving Average.

Yesterday gave us a bullish reversal candle after a series of down days in a row too price to $8.00 per share.

Will price continue the current bounce and rally “up toward the $9.50/$10.00 level of the falling 20 day EMA?

That’s your aggressive counter-trend fade-trade opportunity!

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Corey Rosenbloom, CMT

Afraid to Trade.com

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2 Comments

2 Responses to “Sears SHLD Surges from Lows Dec 29”

  1. ajay Says:

    nice educative info.

    Ajay
    https://gannvibration.blogspot.in

  2. Sarfaraz Says:

    We got to very careful with reversal scene, as that is something that can be very costly, so we need to make sure we do everything in simple and straight forward way, as only then we are going to gain profits and success is going to possible. I trade with OctaFX broker and with them, I do it all very comfortably and easily under steady spreads at 0.1 pips to high leverage up to 1.500 while there is also rebate program available which further enhance things and makes it all so much comfortable.