THU 1/15: KNSA – SELLING (ALL) P/L: -$3,580.60 -15.1%

10:13 AM – While yesterday’s positive reversal on more than twice normal volume looked constructive and suggested the start of a potential quick recovery, that follow-through failed to materialize. This morning, shares are making new lows. The stock now has significant overhead supply to work through, and is technically disadvantaged. I’m exiting the position. Capital is being redeployed into cleaner setups with better upside asymmetry such as Knowles Corp (KN – NYSE) which I am now starting a 1/3 position in.

James’ Trader’s Tip: Failed Reversals Are a Red Flag

  • One strong day does not make a trend — follow-through is required.

  • When a bullish reversal fails immediately, risk escalates quickly.

  • Cutting exposure in damaged charts preserves capital for stocks that can move higher with less resistance.

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