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Saturday, July 10, 2010

HES short

A look at a short taken in HES on Friday.
Taken because of what I saw on the faster time frame, but I'll start with what may be helpful to look for on the slower time frame.
Missed the original breakdown move from the early session, but it did demonstrate nice measured moves throughout the day.
13-min chart
I just happened across HES while it was at it's LOD and started watching it closer as it was making it's second bounce off of the $52.25 area.
The fact that price was at it's LOD while the majority of the market was Up drew my attention. But when I saw this pattern on the fast time frame I was looking to get short with a very tight $0.12) stop. Curious how price formed the same pattern at support before the breakdown as it did into resistance on the consolidation post-$53.25 breakdown (a mirror image). Also nice how the measured move from the breakdown of the bearish wedge also happened to coincide with the PDL, giving an encouraging target.

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