Herbalife (HLF) hits resistance

I have long been interested in shorting Herbalife (HLF) for fundamental reasons.  But I don’t like to trade fundamentals, so I was quite pleased to see the chart of HLF scream “short!” this week.  The stock spiked over 10% yesterday before selling off in the afternoon.  The selling has continued early today.  We’ll see how the rest of the week plays out, but right now it looks like a giant “bearish wick” (both daily (yesterday) and weekly) at the 200 day moving average and downward resistance trendline.  Seems like a good spot to short.

2015-03-24-HLF_CHARTS

  1. Draft
    March 26, 2015 at 11:43 pm

    Something interesting is going on in the S&P but I’m not sure what — it seems to have stalled at the long-term Fib resistance where it stopped last month. But I’m not sure what that means other than it’s taking a breather.

  2. March 30, 2015 at 10:42 am

    S&P looks to have bounced off the new trendline support, around the 50 DMA after threatening last Thurs/Fri.

  3. March 30, 2015 at 10:43 am

    It’ll be interesting to see if it can finally break convincingly above 2100. As you note, Draft, that has been a topping area for 6 months now…

  4. Draft
    May 6, 2015 at 3:48 am

    Been a while since I checked in — seeing anything interesting in the charts? We’ve been in a holding pattern for over a month…

    • June 12, 2015 at 1:45 pm

      Thanks for checking in, Draft. I am seeing what you see… holding steady. Major (US) indexes look near end of rising wedge to me, but nothing broken down yet. I am remain bearish, but not expressing it with $$ yet. Just holding. I like TLT as a possible rebound here…

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