Monday, July 6, 2009

Trade Adjustment - Big Lots Inc

Hello,
We saw a nice move to the bear side in our Big Lots Inc. (BIG) put play. We opened at a nice low $20.24, dove down to $19.60, only to rise to close at $20.00. Because of our initial target of $19.89 intraday, I have decided it is time to adjust to start locking in profits.

The first goal hear is to define our next, intermediate office. After plotting average price movements & Fibonacci levels, I've made a decision to set the next target at $18.27.

Taking a look at volatility, we can see that 30 day HV is on the rise, which is expected of a falling stock. This is confirmed by bearish volume, which is rising. The best thing I can see is the stock price breaking the 200 MA.

So far, I'm feeling confident we will end up profitable. Only time will tell.

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