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Jeff Cooper: Persistence Pays Off With NetSuite Short Trade
Sometimes, traders need to try twice before a setup works.
Jeffrey Cooper    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

To get Jeff's commentary plus day and swing trading ideas each day, take a FREE 14-day trial to Jeff Cooper's Daily Market Report.

Technical analysis is a great predicting tool as long as it comes with the understanding that setups are only setups and can fold.

And, when they do, the ensuing moves can be fast and large.

For example, let's take a look at a daily NetSuite (NYSE:N) chart from last October with its 200-day moving average, which shows a nice turn from a little "W" bottom and a test of its 200 DMA.

http://image.minyanville.com/assets/buzzbanter/charts/original/040414/N_Daily_Chart_f_1396623891.jpg
Click to enlarge

The technical presumption in the recent decline was that the prior breakout point in late December 2013 and early January would define a low coinciding with another test of the 200 DMA. In fact, this is exactly what played out in early February, perpetuating a run to new highs.

However, the takeaway is that the second test of the 200 DMA and the prior breakout point at around 100 were suspect as the second mouse gets the cheese, so to speak. In this case, the second probe of the 200 DMA would see Netsuite faltering with the bears getting the cheese, or the move below the 200 DMA. Range precedes price, and the large-range decliner on March 21 suggested a failure below the 200 DMA. The next day's follow-through confirmed the urgent selling. Following a turn-up on the 3-Day Chart and a 1-2-3 Snapback sell setup on April 2, Netsuite resumed its accelerated downside momentum.

Twitter: @JeffCooperLive
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Jeff Cooper: Persistence Pays Off With NetSuite Short Trade
Sometimes, traders need to try twice before a setup works.
Jeffrey Cooper    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

To get Jeff's commentary plus day and swing trading ideas each day, take a FREE 14-day trial to Jeff Cooper's Daily Market Report.

Technical analysis is a great predicting tool as long as it comes with the understanding that setups are only setups and can fold.

And, when they do, the ensuing moves can be fast and large.

For example, let's take a look at a daily NetSuite (NYSE:N) chart from last October with its 200-day moving average, which shows a nice turn from a little "W" bottom and a test of its 200 DMA.

http://image.minyanville.com/assets/buzzbanter/charts/original/040414/N_Daily_Chart_f_1396623891.jpg
Click to enlarge

The technical presumption in the recent decline was that the prior breakout point in late December 2013 and early January would define a low coinciding with another test of the 200 DMA. In fact, this is exactly what played out in early February, perpetuating a run to new highs.

However, the takeaway is that the second test of the 200 DMA and the prior breakout point at around 100 were suspect as the second mouse gets the cheese, so to speak. In this case, the second probe of the 200 DMA would see Netsuite faltering with the bears getting the cheese, or the move below the 200 DMA. Range precedes price, and the large-range decliner on March 21 suggested a failure below the 200 DMA. The next day's follow-through confirmed the urgent selling. Following a turn-up on the 3-Day Chart and a 1-2-3 Snapback sell setup on April 2, Netsuite resumed its accelerated downside momentum.

Twitter: @JeffCooperLive
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

More From Jeffrey Cooper
Jeff Cooper: Persistence Pays Off With NetSuite Short Trade
Sometimes, traders need to try twice before a setup works.
Jeffrey Cooper    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

To get Jeff's commentary plus day and swing trading ideas each day, take a FREE 14-day trial to Jeff Cooper's Daily Market Report.

Technical analysis is a great predicting tool as long as it comes with the understanding that setups are only setups and can fold.

And, when they do, the ensuing moves can be fast and large.

For example, let's take a look at a daily NetSuite (NYSE:N) chart from last October with its 200-day moving average, which shows a nice turn from a little "W" bottom and a test of its 200 DMA.

http://image.minyanville.com/assets/buzzbanter/charts/original/040414/N_Daily_Chart_f_1396623891.jpg
Click to enlarge

The technical presumption in the recent decline was that the prior breakout point in late December 2013 and early January would define a low coinciding with another test of the 200 DMA. In fact, this is exactly what played out in early February, perpetuating a run to new highs.

However, the takeaway is that the second test of the 200 DMA and the prior breakout point at around 100 were suspect as the second mouse gets the cheese, so to speak. In this case, the second probe of the 200 DMA would see Netsuite faltering with the bears getting the cheese, or the move below the 200 DMA. Range precedes price, and the large-range decliner on March 21 suggested a failure below the 200 DMA. The next day's follow-through confirmed the urgent selling. Following a turn-up on the 3-Day Chart and a 1-2-3 Snapback sell setup on April 2, Netsuite resumed its accelerated downside momentum.

Twitter: @JeffCooperLive
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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