Thursday, April 21, 2011

URI is following the rules

URI crossed the 30 moving average with high volume on the downside. It is entering the start 4. This is the optimum time to short a stock. It pulled back to form the shoulder on the right of the head. It is the typical text book formation of head and shoulder. I shorted heavily on this stock at this price of 29.5.

I am expecting it to go down to 23 in a couple of weeks. There will be some pull backs on the way. All one has to do is hold the stock until it is below the 30 day MA. Put a buy to cover, stop limit , 5-6 % above the 30 MA.
Only some stocks go, and cross the 30 MA depending on the volatility of the stock.

In this case URI is not that volatile that it crosses the 30 MA. So hang on the ride down dude!!! This stock should help me get out of the recent losses into the fertile profit area. And the profit will be good money. Please do not mess up this text book case man.

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