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7 Attachment(s)
Short DFS
DFS is a company in the Credit Card group.
It broke below the 50MA and could fall further.
The question is the following: is it better to short a bounce or to short a break down?
The answer is: Both could work.
We can see below that DFS is weak and in the lower section of the envelope.
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Now, we also see that the previous uptrend has been strong. Nothing says that a bounce will fail.
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The stock and the sector are in short mode. The general market is neutral.
[ATTACH=CONFIG]29129[/ATTACH]
Below are the starts for shorting a bounce.
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[ATTACH=CONFIG]29127[/ATTACH]
Below are the stats for shorting a breakdown on volume just below the close of yesterday.
These do not look interesting, but...
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When we run the sensitivity analysis, we can see that a breakdown on volume with a lower entry target offer better returns. I would go for that type of trade instead of shorting a bounce.
[ATTACH=CONFIG]29132[/ATTACH]