Trend lines  are a key element of chart patterns and technical analysis . While the most common use of trend lines is to connect consecutive highs or lows, the extensions of trend lines can often prove to be valid.
On Sunday night in my stock newsletter , I highlighted ESCL as a short selling  candidate due to the rising channel  the stock was trading in. This channel was easily seen on the chart. The lower trend line obviously connected the recent lows, but the upper trend line  was different. Not only did it connect the recent highs, but it was an extension of the trend line which connected a series of lows back in late January.
On Monday, ESCL triggered when it hit our short entry price of $27.50 and began to break the lower trend line. This was at the beginning of the day, and the stock finished the day higher, taking us out of the trade at the end of the day with a small $0.40 loss. On Tuesday, however, the stock re-triggered when it broke $27.50 to the downside, and this time it worked quite nicely, giving members at TheStockBandit.com  a quick 10% winner and yet another trade to smile about!
We have a disciplined trading strategy  and we’ll give a good setup like ESCL a second chance to work. Our winning trades far outshine our losing trades, providing ample trading profits  for us on a regular basis.
President, The Stock Bandit, Inc.