Charts Make Trading Easy

Yesterday i was short EBS. With a big run-up, it was time for some consolidation. EBS chart tells the story. I covered at 16.50$ taking 1.5$ gain or 8.3% returns in 1 day. Again and again charts have provided excellent insight on the movement of the stock.

Few factors that caused the drop
– overbought indicators, causing smart money to sell
– profit taking and new shorts causing selling pressure
– 500 pt drop on the Dow adding fear

Downside potential is huge as more and more buyers panic and trigger selling pressure. However I couldn’t let 8.3% gain go away.