Cree Inc. (CREE) has been a solid performer this year. The stock has been in a nice uptrend for all of 2013 going from $33.00 to $76.00 more than doubling in price action.
TREND CHANGE
On August 14, 2013 (CREE) gapped down and broke the uptrend line that it established for 2013. The gap down was more than $14.00 points on downside action. This gap down put the stock on short watch because the uptrend is broken and it is in hunt for solid demand.
LEVELS TO WATCH
Supply exists into $55.50 and has demand levels at $48.00, $45.00 and $38.00.
THE PLAY
Short any bounce into $55.50 with a stop of $58.90. Targets would be $48.00, $45.00 and $38.00.
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Disclosure: Swing Newsletter Subscribers are short CREE from $55.50 on 8/27/2013
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Gaps often offer key clues for trend changes and entry triggers. How do you use gaps? Share a comment below.
