My MACD readings is a bit rusty. So, take it with a pinch of salt.
The following chart uses 2 indicators to determine a short entry.
1. 20 day MA
2. MACD histogram
Some points to note:
1. ARE has been trading at a lower range. Look at the boxes drawn. It is still not clear if the new range is between $31 and $35.
2. Yesterday, closing provides a clearer picture that it is now being resisted by the 20day MA. In fact, if I recall, yesterday ARE was ‘up’ till the later hours of the day. Perhaps, a sign that the bulls are getting exhausted.
3. MACD. A possible MACD bearish cross. I also counted 4 consecutive green MACD histogram. Â If a red histogram appears, that is my signal to short. (4green histogram followed by a 1 red histogram)
Reminder: My MACD readings are ‘rusty’. Perhaps, others can comment if my reading is right.