The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition

Question 81—Holding, Adding, or Profit-Taking

Figure 6.81

At point A the stock declined to 58.78. At point B it fell to 58.71 but recoiled from its new low. This false downside breakout was accompanied by bullish divergences in several indicators. If a trader went long with a target near the upper channel line, which of the following actions are legitimate at the right edge of this chart?

a. Sell and take profits.

b. Sell half, hold half.

c. Continue to hold, tighten the stop.

d. Add to the winning position.

1. A

2. A or B

3. A, B, or C

4. All of the above