Very good examples today illustrating something we've talked about for years: first test of support is a buy (in a bull market), second test is a short or a pass, but never a buy (unless it prints a higher low -- not always easy to catch).
We had an 88 short alert in our newsletter last night on WLT (and posted in StockTwits)this morning before it triggered.
We had WLT as a long on the initial test of the 50SMA a few days ago. It worked well but now stock was returning back to test the support. On daily if a support is tested again in a short time-frame then we pass from trying to buy it long on support to looking to short the breakdown.
We missed a great entry on the rally to 20EMA/5 min -- short on the reversal with stop above.
But thankfully WLT based at 88 and gave a an entry short right at the number.
Very quick 2.5 points
Our other trigger was from Wed newsletter -- support long CAM 42. Again, perfect example, this time intraday, of how to buy the first support, but either short or pass on second. So daytrader would have caught the first move up long but passed on the second (or gone short).