Potential Orica trade

Orica could be worth a potential aggressive short if we see a slight move higher today.

ASX 200

Yesterday the price closed above its upper Bollinger Band, with both the RSI and stochastic at overbought levels. Traders could potentially look at placing a stop above the downtrend at $23.50, looking for a move back to the 20-day at $20.72. Its going against a strong uptrend, hence I would be keen to act fairly nimbly.

The idea behind this simple strategy is that we see mean reversion.

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