TJX is an active short trade that recently came within a point of hitting the first target just
before the market bounced and once again looks to offer an objective
short entry here as it back-tests the recently broken S1 support level
(now R1, resistance). T2 (28.30) is my preferred swing target on this
trade over time and would provide roughly a 35% gain from current levels
if hit. Therefore, stops can be set as high as 10% above current
levels and still offer a 3.5:1 R/R although one could also short here
with a stop not too far above resistance on a move over the 44.40 area,
thereby giving this trade an excellent R/R of 15:1. Daily & 2-day period charts below:
TSCO is one of several active short trades that still has a lot of meat left on
the bone. Notice how that 100 ema has acted as support during the
bull-run on the stock. This is a 2-day period chart so that level (red line)
is the same as the 200 ema on the daily time frame. Any solid move
below or a close under that level would be the next objective short
entry or add-on for those currently in the trade while a break below T1
should open the door to T2. Stops above the 101 area, targets marked on
chart.
Finally, the IBB short trade recently hit the first target (T1) where I covered along with most short positions due to the broad markets & AAPL hitting my downside intermediate price targets. However, IBB is once again offering an objective short entry as the short-covering, BTFDer's momentum-fueled-but-soon-to-end-bounce has taken the stock back to resistance. The overbought reading on the 60 minute chart offers a nice little kicker for the trade.
