SLW: Broken Support At 40.74

From yesterday morning:

"Why in the world would The Bulls let The Bears bring it all-ll the way back to 40.74 after TWO little upside breakouts (the red arrows)? UGH.

ANSWER: Because The Bulls had run out of spinach, and 40.74 wasn't going to hold."

This chart is as of Thursday's close, with The Bears having knocked out 40.74 support after The Bulls had TWO failed upside breakouts.

Friday's open...



...Gap Down to 39.83, then a quick rally to 40.62.

The reflex rally came so fast, I fumbled placing my order to short 2,500 shares at 40.55, just below horizontal resistance at 40.57. I typed 40.45, and that's where I got filled.

I expected at least a 50% retracement of the reflex rally off the Gap Down low, which was 40.18, and I covered the short just ahead of that, at 40.23, looking to get better positioned short if SLW rallied again.



I got short again at 40.54. The Bulls had broken out of the little triangle (pattern in white), so I covered the short going into the retest of the top of the pattern (white arrow) in case the retest was successful, and planned to short it a third time if The Bulls tried to rally it.

The retest was unsuccessful and failed to produce another bounce, so I decided to call it a day.



Too bad that I didn't hang about a little longer because there was another excellent shorting opportunity off that little triangle.

Notice how (triangle at the left of the chart):

1. The retest of the top of the triangle failed at the first down arrow
2. The bottom of the triangle broke at the up arrow
3. The retest of the bottom of the broken triangle failed at the second white arrow, validating it as resistance.

The Bears delivered the 1-2-3 Punch, and down she went.

The Bulls tried to establish something at the end of the session. They broke out of a mini Ascending Triangle (in yellow) that is nested within a Channel (in white). The clock expired with The Bulls defending the top of the Ascending Triangle, at 39.85.

The session high was 40.72, just below broken support at 40.74 in the first chart above.



Gain: $900