Of the stocks I mentioned yesterday that I am bearish on, none look better than PNRA.
This stock recently broke down from a Head-and-shoulders pattern on 1/13, and has moved back up to retest resistance around the $47.75 level. The play on this is to sell the stock short, (although i usually use puts to play the market short). However for simplicity sake i will stay with the stock only. The stop is set to $49.01 with a price target of $39 based on the pattern breakout. I will take a position early morning sometime after 10:00 est. 1280 is the max number of shares that i can short. Assuming a 20% margin for the short side as well, with a position of 1000 shorted shares is $9600 set aside for margin purposes. To make this techinical pattern more ideal, the estimated $8-9 move is about 20% of the stock price. I have found, as have many others, that %20 moves seem to be very regular healthy ranges of movement.
No comments:
Post a Comment