My view on the market is a tad bearish so I am going to take only short positions in my trading portfolio. Here’s two that seems interesting to me
LHCG - LHC Group, Inc. has been forming lower highs and higher lows off late, but the recent action has broken down the most recent lows. It has also managed to break down the support trend line. It might pull back and retest the support line but that will be an excellent opportunity to short. Here’s my plan for LHCG
Short Price: $28.0 and above
Stop loss Price: $29.70
Target: First $26.00 and then $24.50
Keeping the max dollar loss at $250 (I will post about my risk management rules soon) I can short 147 shares which gives me the potential profit of $294 for the first target and $514 for the next target.
Another shorting opportunity is CCRN- Cross Country Healthcare, Inc.
CCRN - Cross Country Healthcare, Inc. has been sloping down in a nice little channel. It is trading right at the top end of the channel and ready to turn down again. Here’s my plan for CCRN
Short limit price: $7.40-$7.45
Stop loss price: $7.65 ( it will have to break out of the resistance trend line to reach this level)
Target price: $6.45
Keeping the max dollar loss at $250 I can short 1000 shares. But I am going to limit my trade size to $5000 and short 675 shares instead. Which gives me potential profit of $640.
Let’s see how it goes.
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