Short set-up in a penny stock (No position - just educational)I am not short nor will I initiate a short position in this stock. This is just for educational purposes to train your eye for patterns. Notice there is a major H&S pattern followed by a minor pattern beneath the H&S. This is an example of a high probability set-up.
I will not take this trade because I don't short low market cap/low volume penny stocks like other stock gurus famously do. But if I was long this stock this would be a big sell signal.
CERC
Wedge pattern on CERCOn the chart you'll see that this stock is nicely trading between the trendlines. I am long biased, but you can make some profit on the downside as well.
I will wait until the price hits the lower trend line (around 3,5) and buy shares.
My stop loss will be just under the trendline, around 3,30.
My profit target will be around 4,30.
Happy trading!
