I’ve written twice about the stock’s potential as a countertrend play here and here. I suggested a break of the high of the low bar as a good entry signal with a tick below the low of the trigger bar as a stop. That strategy would have already resulted in the election of at least 2 stops.
Currently, the stock looks predisposed to further downside.
At this point, I’m happy to accept those losses and leave the stock alone unless and until it can become positively structured. That process will only begin with a comfortable close above the first line of resistance at $71.59 followed by a break of major resistance up around $76.39. A break down through the rising trendline would validate the continuation pattern represented by the identified triangle and serve as proof that the path of least resistance is to the downside.
For what it’s worth.
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