Hubert Senters here.
In this video, let’s take a look at NTAP as a potential bracket trade. But really it’s an example of a poor example. That’s kind of weird rap but sometimes you need to look at charts that don’t look great in order to know what they look like.
So first off you got NTAP which is not doing great. It’s had a gap down consolidation, move lower, gap down consolidation. Now, it did have a good little breakaway right here, a breakaway and then you got another breakaway.
It’s so far below the cloud and I just call like this just the charts got holes in it and in time the chart has holes in it. It’s just a little weird and it’s dangerous and it’s more risky in my opinion. It’s kind like bipolar so I wouldn’t particularly do this one.
If I did do it I would do a breakdown short. These are the ones where I would actually impose my opinion on the thing as opposed to just going straight with the bracket trade. I would say hey, if it breaks $49.68, I would short it.
I would not get long if it went above $52.20 because it’s going to run into the underside of the cloud and probably not go much further than that. But anyway this is a good example of a bracket trade that I would not touch on a long side but I would entertain to the short side.
Hope that helps. Good luck. See you on the next video.