A smart strategy would have been to take a long position before the breakout. The intraday pattern offered a low-risk entry as long as the trader was prepared to exit quickly if larger forces interceded. Notice how a rally above the small-scale triangle presented a perfect entry for a larger price move. But traders needed to stand aside near the bottom of this pattern because it had the appearance of a bearish descending triangle. This suggested a break of the lower support line would trigger a substantial selloff.
Good trade management was required to make this position work itself into a profit. As I mentioned above, resistance will stall most bear-market rallies at the 200-day moving average. This formidable barrier was sitting near $12 on Amazon's daily chart. That hot spot also crossed the major downtrend line for the postbubble collapse. The smart swing trader takes profits whenever price approaches the danger zone.
Nvidia (NVDA:Nasdaq): Locating Short-Sale Entry Signals
Computer gaming has traveled light years since Pong was first released in the 1970s. Fortune 500 companies now cater to a game habit measured in the billions of dollars. In fact, current industry revenue rivals worldwide movie and DVD sales. This time-wasting endeavor has moved well beyond its core teenage audience into a variety of important demographics.
You can profit with trade setups in the gaming sector, but forget about direct plays on the boxmakers themselves. Microsoft (MSFT:Nasdaq) (Xbox) and Sony (SNE:NYSE ADR) (PlayStation 2) have core interests unaffected by industry sales. Japanese giant Nintendo (Game Cube) has no ADR (American Depositary Receipt) trading on the U.S. markets.