Men’s Wearhouse (MW) had a nice run from $27.00 to $40.00 in a six month period.
GAP REVIEW
On September 12, 2013, MW gapped from a nice uptrend off the daily. The gap down broke the trend line of the daily chart putting long-term investors in a headlock. The gap down had institutional selling with ten times above average daily volume. Meaning the bigger players left the stock.
KEY LEVEL
Supply exists overhead from the gap down day at 34.00 and key demand exists at $28.00.
THE TRADE
Short the break of 33.50 and Stop at 36.00 with a Target of 28.00.
Disclosure: for more detailed guidance on this trade check out the Gap Swing Newsletter.
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Read more stories by Troy Peterson here:
Trade Less Make More: Time Frame Alignment
Poised For The Kill: Less Is More In Trading
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Do you have any questions on gaps? Post them for Peterson below.