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Why should we go short on Thomas Cook (LSE:TCG)? It is because the selling pressure in the market is increasing. There has been some serious short-selling in the market, and certain private traders want to sell accordingly? If an elephant trumpets, would you also expect its calf to trumpet?
The price on the chart has crossed the EMA 21 to the downside and closed below it, while the Williams’ Percentage Range was shot into the oversold region (below -80) before bouncing upwards. The present weak rally in the price, coupled with the Williams’ % Range bounce from the oversold region, gives an opportunity to sell at a better price.
We got to determine to keep on gathering as much information as possible about the markets, but not hoping the results to be an instant thing. We never can envisage how soon permanent success can come to us, since it got to do with an individual trader. Anyone standing for an instant gratification would eventually attain less speed with more haste or may not even achieve any speed. That is why it is great not to look for instant gratification, for the ultimate thing in trading is not instant gratification, and it is something that can be done away with.
This article is ended with the quote below:
“We can never be fully prepared for all of the potential negative events which impact price action. We need to have a strong defensive plan in place from the start to assure that we will be able to remain in the market and have the opportunity to make up for losses which occur after those events.” – Brian Shannon (TRADERS’ February 2013, www.tradersonline-mag.com)
