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Unformatted text preview: believe a downward move was likely. At this point the customary pullback to the line in the $47.50 areas is likely. This will be the optimum time to short it once again. Anticipating a downward move to the previous bottom of $38.50 seems inevitable. If things get really bad then it will even go lower, however, if it stalls at this support, buying back your short is the safest thing to do. Shorting is about discipline. Making small amounts often as opposed to the grand slam. Figure 2: Weekly chart of Merck & Co. Graphic provided by: SuperCharts . In Figure 2 you can see the downward intermediate trend is still intact on the weekly chart. This trend will continue. The volume on the small head and shoulders is easier to view from this chart. It diminishes throughout the construction of the pattern. In addition, the 18-year long-term trend has been broken in the $62.00 areas....
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- Spring '10