This is a simple break of support trade in a stock that has been tracking sideways for several months now. 

Highs are consistently getting lower and the lows are being testing, which are now forming a solid support level.

But this selling pressure and testing of support may break at some stage, and so a short sharp sell order could generate a handsome reward for those bold enough to take the trade.

The risk reward on this trade doesn't look amazing, which is why you could consider trailing a stop if the support level does break. No need to lock in with a take profit if the momentum continues south.

APA on the ASX short on break of support

Dec 21 2020

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