HOKU Trade Recap - Using the 200 MA

Here’s a trade in HOKU - HOKU Scientific, Inc. from Friday, which uses a classic short sell trading pattern, and the 200 moving average on an intraday chart. The stock shot up on news last week, and followed it up by having a very negative day. I looked for the stock to lose more after such a quick reversal.

Using the 15-minute chart, entry came on the 5th candlestick. A stop is placed above the high of the day, and targets are set for selling in partial lots. You can see the stock trade played out perfect.

Moving from the 15-minute chart down to a 5-minute view shows HOKU stalling at the 200 moving average. Today it’s bouncing off that support level.

I’ve talked about using the 200 ma as a trading tool before. Do a search for 200, and you’ll find a few. Keeping HOKU on the radar for a remount on the dark side.