Big Lots Inc. (BIG) just recently gapped down on earnings breaking through a daily uptrend line and challenging its previous uptrend.
GAP REVIEW
On May 30th, 2013, BIG gapped down taking out the $36.19 support level. The stock immediately sold off and pressed down into the $34.00. The next day it traded inside range from the gap day and it triggered short on the break of the Gap day low price of $34.11.
KEY LEVEL
BIG has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into $34.00. Key demand exists at $31.00. These levels give us a guide of risk to setup a nice swing trade.
THE TRADE
Any bounce back up into overhead supply at $34.00 area is a nice entry for a swing short. The stop would be over the $35.45 and targets would be $31.00 and $28.00.
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Disclosure my Swing Newsletter Subscribers have been short since 6/03/2013.
