Date Provided to Members: September 18, 2011
Service: Chart of the Day
Entry (Short): $36.96 (2nd entry at $39.00 never triggered)
Target Price: approx. $32.86 (target was $33.00, but gap down was at $32.86)
Profit (Loss): +12.48%
Days Held: 3
Comments: Here is what we had to say on Thursday night, September 15th, as posted in the Chart of the Day that we provide to our Silver, Gold and Diamond members:
“BID is a $2.6 billion consumer discretionary company that operates as an auctioneer of fine and decorative art, jewelry, and collectibles in North America, Europe, and Asia. The MACD on bid has moved right up against its centerline resistance at the same time it printed a doji at its 50 day SMA. BID moved to $39.28 intraday on Friday, well above its 50 day SMA at $38.49, but failed to close there. The reversal and finish at $38.22 potentially sets BID up for short-term weakness. The reward to risk now sets up well on the short side. We like entry from the current price to $39.00 with a closing stop at $39.50. Our target to the downside would be at the triple bottom support near $33.00.”
Update: BID failed to negotiate its 50 day SMA as the doji there and at gap resistance proved to be too great an obstacle for the bulls to overcome short-term. BID quickly fell back, actually falling more than a third to $25.00 in just two weeks before rallying the last two weeks.
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