Smelling the brakes

I think most understand when they see this comment from me in one of my twitter messages what I am referring to (“I smell the brakes”). For those that don’t I’ll provide some color on what I’m trying to convey by looking at the Daily chart for VHC (Virnetx Holding Corp) as an example:

I have been stalking VHC this week looking for a good entry (either Long or Short) and noticed today that it had held the 22.24 Support 2 days in a row. To me this looks like the Bulls are starting to take over so the down move has abated – hence the “I smell brakes” comment to reference the move coming to a stop.

I trade VHC frequently as it provides good movement for daytrades both long and short – today being no exception. The trade setup today is just a daytrade.

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