Pascal
05-18-2015, 03:27 AM
As we can see below, AMGN - A biotech company - has been in a trading range between 150-170 since end of last year. This stock could be shortable if the Biotech sector breaks, but the sector is still in a buy mode.
Hence, if you want to venture on shorting a sector that is well extended in value, then it could be interesting to short AMGN when it reaches the upper side of its envelope (Setting: Short an Overbought situation)
The stock could be shortable between 166 and 169. I do not intend to short this stock, because the Biotech sector is not in a desperate situation.
It is however interesting to have a look at this idea and see if we could make money shorting an overbought situation.
Pascal
30227
30229
30230
30228
Hence, if you want to venture on shorting a sector that is well extended in value, then it could be interesting to short AMGN when it reaches the upper side of its envelope (Setting: Short an Overbought situation)
The stock could be shortable between 166 and 169. I do not intend to short this stock, because the Biotech sector is not in a desperate situation.
It is however interesting to have a look at this idea and see if we could make money shorting an overbought situation.
Pascal
30227
30229
30230
30228