Ann Taylor Setting Up For Another Short


On July 13th I discussed here ( that ANN Inc (NYSE: ANN), formerly Ann Taylor Stores, might be a good short opportunity based on both the longer and shorter term charts.  The stock then ensued to rally more than anticipated, finding resistance near its 50 day moving average (yellow line) and depending on how tight one had placed the stops, might have been stopped out of the trade.  That is how trading works however, not every trade can work and good risk management dictates that stops must be taken at the predetermined levels.  That does not mean however that should a trade setup occur again on the same stock around similar levels it cannot be tried again.             


Such is the case with ANN Inc (NYSE: ANN) currently.  After stopping me out of roughly 2/3s of my original short position the stock started moving back down toward the $25.50 area, topping out on July 21.  Yesterday the stock proceeded to slip -3.84% and with that closed well below the $25.50 area and the 200 day moving average (red line).  I added to my small left-over initial short position yesterday before the close and am eyeing a first quick target at $24 and a second target closer to $22.  Initial stops I am again setting at $26.50.

The longer term weekly chart of ANN Inc (NYSE: ANN) dating back to the second half of 2008 still looks much the same, with the stock still in the longer-term up-trend but looking to put that to a serious test.

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