GM/General Motors - This one is hitting the 20-WEEK EMA right now in the bigger picture, but it's under the 20-day and 50-day MA. The little bounce last week forms a three-bar bear flag. Traders who want to short GM should have the sell alert placed at last Friday's low. The first downside target is the February 3 swing low. It's a small target, so reduce size to less than half. The 50% rule of thumb says that since the bounce has only been three bars, it should take no more than 1.5 bars to reach the downside target, IF the downtrend is intact.
04.02.09 09:11 #