This is a continuation from my earlier post. This time looking...

This is a continuation from my earlier post. This time looking at possible shorting trades for the week. Just to re-iterate for all the below stocks I have been looking at daily 5 year charts and daily yearly charts. If I need to break it down further I do but that is what I mainly use.

Sydney Airports (SYD) - Stock has fallen quite significantly from its all time highs back in December 2019 and in all honesty it looks like it wants to fall further. You will notice the stock hits its bottom and starts to trend back up around 18th March (look at a daily chart and also 5 year) The trend on the daily chart has failed on at least occassions to break through at 6.30 (strong resistance) and retraces every time back to the trend line. It is a wedge that is forming and it looks like it wants to break downward. Again be patient, entry points should be just below the trend line. Notice the 4 weak candles last 4 days or so. heavier selling on the last 2 days. The key is the 6.00-6.30 range and also where it hits below the trend line and you can get in with a comfortable short with little to no danger up an upswing. The probability is in favour of it going down. If it heads back up then your stop is either at 6.05-6.10 or if you are adventurous at 6.35-6.40ish. Again you need to see how the trade will develop.

Wisetech Global (WTC) - Stock has fallen from its all time highs on 9th September of 2019 (38.39) and steadily falling where it finally hit a bottom on 19th March 2020 at 10.48 and intrad day low of 9.97. From this point on it has steadily trended upwards and is going to test a key support line at 20.50. This needs to be watched to see how this develops. Daily yearly and 5 year charts interesting. Note on the daily chart the significant drop on the 19th February. Then the stock gapped down on the 20th February. On Monday, Tuesday and Wednesday it tried to finally fill that gap and go up which it didn't. Then on Thursday it failed to close and fill that gap around 22.50 and Friday it fell again to close at 20.39. It appears to me like it doesnt want to close the gap and so naturally it will head down, but you need to see how it will play out.

Harvey Norman (HVN) - This one needs to play out a little bit more, however what is interesting is the significant selling pressure ie large volume of trading on Friday. It is something which definitely caught my interest. It seems to be caught on the fence in the trading range of 3.25 - 3.50. A close below 3.25 on good selling volumes might tip this into a shorting play. (prefer others but still interesting)

Select Harvest (SHV) - Looks ripe for a short. Notice on the 21st and 24th February. The stock tumbled quite significantly and it actually made a gap between these two days. The opportunity to start closing that gap was around the 19th-20th May where it failed miserably. It didnt go past 8.00 and it kept falling quite suddenly and sharply. If it doesn't hold 6.20 then there is a real danger the stock can fall as far as 5.50. It has every possiblity. But again you need to watch how it plays out. We are going on what is the best probability.

CSL Limited (CSL) - A word of warning I would be very reluctant to be shorting a stock that has been such a darling for the investing community. You need to proceed with caution, but I still cant ignore the potential for a short on this stock. Something is definitely amiss and it is starting to show up in the charts. It is very close to a kep support area of 275 ish and looks like it wants to break on the downside. The last 3 days it has fallen from 300 to 275 with very good volume on the Friday session. Just keep it in mind if it looks like your type of trade. It could fall to 250 quite quickly which looks like the next level of support. I myself wont be trading it, but it does like interesting.

Virtus Health (VRT) - minor potential, still needs to develop. Looks like it is in the middle of deciding if it wants to go up or down. It fell on good volumes on Friday and is right at what I would consider its support level of 3.15. The next stop is at its natural psychological support at 3.00 and then its all the way down to 2.00 in a heartbeat.

Challenger (CGF) - I am still looking into this one over the coming days. It still needs to develop further but it has potential. Not touching it right now.

Bluesteel (BSL) - Much like the challenger stock. Key long term support area of 11.00 is the only thing that interests me so far. This needs to play out a little more.

Worsley Parsons (WOR) - A large drop on Friday of 6% on good volumes. A key resistance area is $10 and from there on up the next move is $12. It doesn't look like it wants to go anywhere near that level so the only move is down, especially when there are sellers willing to sell the stock. Still needs to see how this plays out, but its going on the watchlist.

Scentre Group (SCG) - Early stages of reversal possibly. This only came up due to the significant drop of Friday of 6.3%. Candles on Wednesay, Thursday and then on Friday suggest the small rally might reverse. Still too early to say but it can develop. Others are better but it goes on the watchlist.

New Hope Corporation (NHC) - The 5 year chart on this stock looks very ugly and is just trending down consistently since late Mar 2019. The 21st February it had a significant drop on huge selling volumes, Friday 6th Mar - 9th March significant gap which it did fill earlier and went up slightly but it is back down to that 1.35 mark which seems to be its new key support area. It did fall by 8% on Fridays trading on average volume. Need to watch it closely, but I think there are others that are better. Still its going on the watchlist.

Freedom Foods Group (FNP) - The stock fell quite significantly on Friday and was one of the big losers of the day with a fall of 14.68%. Can it fall again or have we seen the lows. My experience tells me that stocks that fall like this tend to keep going until they want to head back up ie better news, better leadership. Its very hard to reverse a fall like this and one that is trending so clearly. You will notice on the long term chart that the key support area for this stock was around 4.00. It breached that and then some on Friday. The play here is to see if FNP can reach its historical support level of 4.00. If it gets there its worth having a short at or just above 4.00, keep a tight stop just in case it recovers but in my honest opinion, the probability of this stock going further down is very good.


Anyway I am absolutely buggered after that. I hope I have giving people some ideas and food for thought. As I keep saying I am only interested in probabilities. Setting up my trades and giving myself the best opportunities for winning trades. All the tips I have given could turn around and do nothing but at least I have given myself comfort within my own risk profile of what I think is a decent trade.

Good luck all, happy trading and DYOR.