Pitney Bowes (PBI) gapped down on earnings Tuesday breaking the 2013 uptrend.
GAP REVIEW
On April 30, 2013, PBI gapped down taking out the $14.00 pivot on the daily chart. The stock immediately sold off from the open in hunt for the next level of demand at $13.00.
KEY LEVEL
PBI has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into the $14.00 to $14.25 range. Key demand exists at $13.00 and $10.50. These levels give us a guide of risk to setup a nice swing trade.
THE TRADE
Any bounce back up into overhead supply at $14.00 area is a nice entry for a swing short. The stop would be over the Gap High of $14.60 and targets would be $13.00 and $10.50.
Disclosure: My Swing Service will provide more guidance and follow-up on this trade setup.
