3:47 PM – Shares have sold off today with volume well below average. Still, there is clear resistance near the ROUND-$28, where the stock was turned back from earlier. Taking some profits here is prudent after recent strength.

SELL SIGNALS:
8/21 @ $24.37 –3.8%
10/7 @ $26.48 +4.5%

ULTRA Trader’s Tip: Respect Overhead Resistance

• When a stock stalls at a resistance level, especially after a run, it’s often a clue to lighten up.

• Momentum traders take profits where others hesitate.

• Respecting resistance keeps your trades disciplined — and your gains real.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.

James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts.

9:51 AM – Bought on 8/18 as it blasted above its 10 DMA with a +48% surge in volume. That kind of strong price/volume action is always a BUY SIGNAL. The very next day, however, shares posted a somewhat concerning negative reversal, and are now trading muted just back under the 10 DMA.

This also helps reduce overall margin and market exposure at a time when capital discipline is critical.

ULTRA Trader’s Tip: Using Margin Wisely

• Trading on margin means borrowing money from your broker to buy more shares than you could with cash alone.

• It’s leverage: bigger gains if you’re right, but bigger losses if you’re wrong.

• Margin should only be used with discipline, since small moves against you can wipe out profits or force a sale.

• Think of margin as a tool, not a strategy. Use it carefully, and never let it manage you.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.

James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts.