Myexit yesterday on NBR couldn't have been worst. Minutes after I got stopped out, NBR took a dive. The decline continued this morning with a giant gap down even though the overall market is holding steady.
I've attempted to short NBR five times in a row now. Only to be stopped out every time. Most of those entries were horrible because I was impatient. Thus, for this trade, I'm aiming to enter only when the probability of a favourable move is very high. I am putting a short stop entry at the low end of today's move. Coupled with a loose trailing stop. If this is indeed the beginning of a major down move, then the weakness should not be bought back and the gap shouldn't be filled.
Entry: \$16.10, low end of today's range on big gap down open
Stop: \$16.60, near top of gap
Target: \$13.20, back to long term downtrend Fibonacci level, see Figure 2.
Update 07/23: Well guess what, I'm stopped out again!
[caption id="attachment_1608" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][/caption]
[caption id="attachment_1610" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-22-nbr.png : http://traderpau.files.wordpress.com/2009/07/2009-07-22-nbr_prop1.png