WED 9/2: DSGX — Following the Rules and Selling a Portion on Technical Weakness

James F. Taulman
James F. Taulman
James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system. •

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/

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