Chico’s Fas (CHS) just recently gapped down on earnings breaking through a daily uptrend line and challenging its previous uptrend.
GAP REVIEW
On May 29, 2013, CHS gapped down taking out the $18.20 support level. The stock immediately sold off and pressed down into the $17.70. And just yesterday it traded below the gap day support low of $17.65 triggering a swing short entry.
KEY LEVEL
CHS has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into $17.65. Key demand exists at $16.00. These levels give us a guide of risk to setup a nice swing trade.
THE TRADE
Any bounce back up into overhead supply at $17.65 area is a nice entry for a swing short. The stop would be over the $18.20 and targets would be $16.00 area.
= = =
Disclosure my Swing Newsletter Subscribers have been short since 6/10/2013.
