VE: Short entry stop $27.85

Veolia Environment (VE) has all the right setup for a short according to my experimental trading strategy (version 1.1). Here's a log for a paper trade order.

My logic for this short.

​1. We are in a bear market.

​2. Utilities (XLU) at \$26.86 is hitting the bottom of its congestion zone from \$28-\$30 but broke a downtrend resistance on low volume (Figure 1).

​3. The VE weekly looks good for short (Figure 2).

​4. The VE daily looks very good for short (see stochastic Figure 3).

​5. VE just tested a long term declining trendline from March 2008 (Figure 4).

Short entry stop: \$27.85, below current upward channel (Figure 4) and hourly support from last week (Figure 3)

Exit stop: \$29.25, above hourly resistance (Figure 3)

Target \$25.0, 50% Fibonacci retracement, middle of previous congestion zone, and nice number.

Reward/risk = 4.25/1.4 = 3.035 > 3.0

[caption id="attachment_1363" align="aligncenter" width="500" caption="Utilities"]Utilities[/caption]

[caption id="attachment_1364" align="aligncenter" width="500" caption="Veolia Environment (VE) long term chart"]Veolia Environment
(VE) long term chart[/caption]

[caption id="attachment_1365" align="aligncenter" width="500" caption="Veolia Environment (VE)"]Veolia Environment (VE)[/caption]

[caption id="attachment_1366" align="aligncenter" width="500" caption="Veolia Environment (VE)"]Veolia Environment
(VE)[/caption]