FRI 8/21: AYA – SELLING (1/2) P/L: -$243.71 -2.4%

3:38 PM – Selling half of my AYA position here before the close as shares fall below the 10 DMA on a 38% increase in volume. That combination of a key support violation and heavier selling volume is bearish technical action I do not want to ignore, so I’m reducing exposure here.

James’ Trader’s Tip: Reduce Risk When Price and Volume Turn Bearish

  • A break below the 10 DMA is an important technical warning.

  • Increased volume on the decline gives the weakness more significance.

  • Selling part of the position allows you to reduce risk while still leaving room for the stock to recover.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.