RES Update

RES was a trade idea (short) from January 30th, it was/is a trade that we want to come to us so they can be easy to forget about unless you set price reminders which I think is absolutely essential to getting the best set ups in real time.

 RES is much easier to see and understand on a 5-day chart, if you are new to the trade, make sure you see the link above to the original idea.  Here it is pretty clear RES is topping, the original post shows many more reasons why this is almost certainly a top.

 We were hoping to catch a bounce, but RES just hasn't been able to muster much, however from where we are now, the trade could be entered here or phased in to with a partial entry here and the rest under $16.25 with a stop just above $15.75 (don't use $15.75 as it's too obvious, $15.84 or something like that would be better).

What we are looking for in this trade is the stage 4 decline which in short terms is the equivalent of stage 2 mark up for a long, it's the area in which the stock tends to trend better and in a short, they fall a lot faster and deeper then they rise in a bull market.

 The 30 min chart has remained intact and bearish, it is now making new leading negative lows. In red there's a little head fake move that was under distribution.

 Here's the recent consolidation, I was hoping we'd see some more strength to short in to, but as you can see, the consolidation is starting to fall apart as 3C drops to new lows while price is still relatively flat.

 This is the same area on a 1 day chart. Note RES is very close to breaking down below the consolidation.

For initial purposes, here's where the 1 day stop Channel is at, so the stop I mentioned is about right, however for a longer trending position, that will likely need to be widened if you plan on trying to catch the trend. We'll have to see what volatility looks like below $16.25, but I wanted to make sure to bring this to your attention.