BHP had a big run up on news that it wasn't going ahead to buy Woodside Petroleum Limited (WPL). There was five pieces of evidence that a short trade was forming at the top at 49.81.1. Momentum divergence leading into the high
2. Extended measured leg move (not shown)
3. Pump fake to a new high and then falling back below previous high
4. Move into and above green extension price level which normally signals a full move and a high
reversal area.
5.Potential trend line break, which would create alot of selling pressure.
I took the trade short at 49. 61 and held it over night. Next morning BHP gaps down and falls to 48.62.
Profits taken at 48.75 for 86 point move. My stop was just above the high of the Highest High (nice and tight).
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