Herbalife Ltd. At Support: Long Quick Swing Trade

Many bashers were out and about when Bill Ackman had his major press conference ripping Herbalife Ltd. (NYSE:HLF). The stock collapsed into the conference then surged following. Many trash talkers hit him hard like CNBC. However, just one week after the monster short squeeze it looks like Ackman was correct on Herbalife Ltd. The stock made a new 52 week low today.

Having said that, the stock did hit a key double bottom support and may see a quick bounce off this level. Please see the chart below. This is a high risk trade but Herbalife Ltd. can easily bounce 5-10% before it continues its downward spiral. Remember, swing trade is about finding the key level and making a quick multi-day trade (long or short). You do not care where the stock will be in one month or one year, you want to capture the quick move. By doing this over and over again, you can beat every hedge fund out there in annual return.

Gareth Soloway
InTheMoneyStocks.com