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A Nice Day-Trade Short Setup in COG at $42.01



August 13, 2012 – Comments (0) | RELATED TICKERS: COG

Usually my swing-trades out number my day-trades by about 5 to 1. But thanks to @Fuinahz I'm short what I believe is a nice setup off of the 5-minute chart of Cabot Oil & Gas (COG). As you'll see in the chart below, this thing has a beauty of a head and shoulders pattern, one of the best intraday ones I've seen in a while. if it can break below $42 we should really see this stock pick up the selling intensity. Plus you combine this trade with the over-extension the market is in being up six straight days in a row, and the fact that COG has rallied over 50% since June, then you have a stock that is ready to see some profit-taking. 

For now, I plan to hold this stock short for today only. If the momentum really picks up to the downside and creates some damage on the daily chart as well, then I'll probably hold overnight. 

Here's the day-trade setup in COG:

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