[Gaps provide unique insights into market trends and can identify specific trading opportunities. Each Wednesday, join us on TraderPlanet as Peterson spots trades for you.]
Staples (SPLS) has been in a nice uptrend for all of 2013 going from $11.50 to $17.00.
GAP REVIEW
On August 21, 2013, SPLS gapped down and broke the uptrend line that it established for 2013. The gap down was more than $2.00 on downside action. This gap down put the stock on short watch because the uptrend was broken and it is in hunt for solid demand. This action forced out any long players from the entire move up for all of 2013.
KEY LEVEL
Supply exists into $14.20 and has demand levels at $12.00.
THE TRADEShort any bounce into $14.20 with a stop of $14.95. Targets would be $12.00 and $11.00
Disclosure Swing Newsletter Subscribers are short SPLS from $13.99 on 8/22/2013
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