Sells STX $25.95.
STX bounced from yesterday’s low to $26.27 yesterday. Today, in spite of another up day for the markets it topped out at $26.12, a lower high. Since I never believed it was going back to the 30’s anyway I see no reason to stay in when the lower high tells me there are not any more buyers at higher levels.
Lower highs equal lower stock prices in the future so take what profit the market gives you and be happy it’s not a stop out for a loss.
The original premise for the trade was a bounce off strong support because of a 30 percent drop in two days. If you change your trade strategy in midstream of a trade with no new information it will cost you money.