Sep. 3 at 4:05 AM
WED 9/2:
$DSGX — Following the Rules and Selling a Portion on Technical Weakness
10:56 PM – As much as I hate to sell this quickly, I couldn’t ignore today’s technical weakness in DSGX. Three bearish signs stood out: (1) shares were down about 2.4%, (2) price was dropping below the 10 DMA, and (3) volume was running above average.
That combination is enough technical weakness for me to follow the rules and reduce the position. I sold half at the close for a
$192.45 loss, or -3.8%.
CORRECTION: The loss was incorrectly reported in the SMS as -
$384.99. The correct realized loss on the half position sold was -
$192.45.
James’ Trader’s Tip: Follow the Rules Even When You Don’t Want To
• A break below the 10 DMA is an important technical violation under our rules.
• Weak price action accompanied by above-average volume makes the deterioration more significant.
• Selling a portion allows us to reduce risk while still giving the remaining position an opportunity to recover.
https://buyingbreakouts.com/wed-9-2-dsgx-following-the-rules-and-selling-a-portion-on-technical-weakness/
