During the US trading session today I am short selling quite a few stocks profitably, such as BBY stock which moved from $35 to $34.50 in less than half an hour. Fortunately I was able to profit from the whole decline, as I fired up the BBY stock charts a few minutes before the breakout shown in the 1-minute chart. There are instances such as this when I no longer pay too much attention to the charts of longer time frames, as the importance of the imminent breakout is quite obvious. The horizontal line of the crosshair points the strong support at $35, and all that needed was a red falling candlestick to break below that level. The total profit of this trade for me was 40 cents per share.
I bought to cover at $34.60 just when the price movement began to become a bit choppy and a couple of hours later the BBY stock price is still trading at that level, comparing to the continued decline of [intlink id=”1141″ type=”post”]HAL stock that I missed earlier today[/intlink]. Notice how the volume picked up while the red candlesticks got bigger and bigger. You really can’t ask for more when you have entered a short trade. As the volume peaked I figured that specific candlestick was an exhaustion one and it was time for me to close my trade. Should the stock price fell below I wouldn’t short sell again as I there is increased risk I might enter in the wrong direction, if the stock decided to retrace deep. I had already secured a profit and I would look for other trading opportunities in the US stock market.