I've entered a short in Nabors Industrial Ltd. (NBR) again. However, I have modified my strategy slightly by entering with a limit at the resistance instead of with a entry stop at the support. From my previous few failed trades, I noticed that my stops keep getting hit and then the price would go in my way. I don't know why I didn't realize it before, but we're in a choppy trading range lately, so it's a general case of short the high and buy the low within the trading range.
Anyway, I marked \$16.09 as a resistance for my exit stop a few days back (Figure 2). The price of NBR has reached it. So I'm entering now. This is the case of being patient and letting the price come to me.
However, as I'm writing this, the NBR is testing \$16.17, the next intraday resistance from last Monday.
Entry: \$16.10, Figure 2
Exit stop: \$16.35, recent high
Target: \$14.50, although I'd also look out for \$10 in the intermediate term
Reward / Risk = 1.6 / 0.25 = 6.4
Update: I got stopped out at around 14:40 in the same day
[caption id="attachment_1594" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][/caption]
[caption id="attachment_1595" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-16-nbr.png : http://traderpau.files.wordpress.com/2009/07/2009-07-16-nbr_prop.png