Quick On The Draw

A quick look at the daily chart showed that SNPS had violated support of a 14-week trendline and had started to pull back from the shorter-term downtrend.

I then clicked the tab on my charting software to look at the five-minute intraday chart and saw the stock beginning to pull back from its intraday low into a bearish pennant pattern.

So I quickly process all this information. I've got the market as a whole going down in the first 40 minutes of the session, a stock that has been shedding more than 16% of its value in the past six trading days and is forming a bearish pattern on the intraday chart. I like to trade with the overall trend and it appears the path of least resistance is to the downside, so the following post goes out on the Insights From The War Room:

10:19:55
Intraday Setup Alert
Synopsys (SNPS) is tracing out a pullback from its intraday low. SNPS is now down 1 3/4 at 49.

The stock immediately starts to fall out of the pattern and short-term players grab almost 2 points.

Short-term trading is about being quick to process, but also about waiting for the right moment to pounce. Utilizing the TradersWire will give you a first alert to price action as it is happening, giving you quite literally an extra set of eyes.

Have a great weekend,

Duke