Another stock trading pattern was used to enter HXL, Hexcel CP Deleware short. The stock trader doesn’t care if their is news on this stock. He just uses the chart to trade. This pattern will be a BS3, Bear short 3. The stock trader is shorting a breakdown of a base which was giving some support to the stock. The trend is down and the online trader likes to trade with the trend. Also notice the falling 20 day moving average (in yellow), and the 50 dma (in red). Both are heading the same way the trade will be placed. It also helps that the space between the moving averages is even, as it signifies a trend is established.
The stock is shorted as soon as it falls below the base, which in this case with Hexcel was around 13.90. Short selling occured on the stock at an entry of 13.82. A stop was placed .15 above the previous bar’s high of 14.23, or around .55 risk. A first target of 12.90 was set for the covering of the first 1/3 shares with pivots used as trailing stops.
The stock will be evaluated as trading plays out.
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