3 Wave Correction.
(Short Sell Trade)
There's a few scenarios that could pan out from here, the
the most likely IMO (In My Opinion) is illustrated on the chart below.
Potential there for a 3 wave correction - should see it down to around $2.85ish.
I've set an alert @ $3.15 to alert me if the stock can bounce, thus be on the way to setting up my trade. If price continues down without bouncing...then my plan didn't fall into place - not to worry, plenty of other fish in the sea. I'd much rather be in a trade that fits my plan - because i have confidence in it - beats being in a BHP trade (Buy Hold and Pray).
Update: Well, this trade worked out almost perfectly. As you can see on the chart below, price didn't quite make it to the $3.15 trigger on the first go, but it kindly had a second go and hit the $3.15 short sell entry perfectly. From there, The setup worked a treat, hitting our target ($2.85) within a few weeks.
Using CFD's for the trade: Short 10,000 SUL @ $3.15 would require $1,575 for margin. Close the trade @ $2.85 yielded $2,940 NET profit after commissions, which is about 186% return on investment. Not bad for a few weeks ;-)
Disclaimer: The above mentioned information is my opinion
only, and NOT to be taken as advice as i am NOT a licensed
advisor. Caveat emptor.