Let's take a quick look back at one of the trades from last week's column. A week ago, we were looking at shares of Chinese web company SINA Corporation (SINA) as our sole short candidate for the week.
Sure enough, the trade panned out as a way to book gains of around 9% from SINA's shedding points.
Essentially, we were looking for this stock to bounce lower off of trend line resistance and then take a short position as shares traded down through the channel to trendline support. Taking a short position in SINA last Tuesday would have resulted in gains of approximately 9% as of this morning.So where should you go from here? Right now, SINA is catching some support at the 50-day moving average. For risk-averse traders, now looks like a good time to take gains. Otherwise, trend line support at the bottom of the channel is still the logical exit target for the SINA trade. If you're going to hold out for a push further down the channel, consider putting in a trailing stop to protect your gains. To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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