Each and every day, as this stock continues to climb, it becomes more difficult for the buyers to hold on. The drop in volume is a sign that the buyers are losing their momentum but it’s the 20-day moving average that we will be focusing on. Our strategy is to short the stock only after it closes below the 20-DMA. Lowes is in an upward trend that is “over-extended” and it’s the moving average that is our trigger, signaling the time when it will be safe to take a short position. It’s important that you wait for the signal before taking any action. We want to make sure the sellers are taking back control.
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