Estee Lauder (EL) : a short candidate

EL is our first short in quite some time. While we don't recommend holding a short for an extended period in what is an otherwise bull market, EL looks positioned as a short trade with a tight leash. After the move up in February, EL has printed a negative divergence on both the daily chart (shown here) as well as the 60 Minute chart. We've also seen black candles the last two days, on increasing volume, which is another sign of reversal. If shorting stocks is something you're comfortable with, we like an entry at the current price, with a tight stop on a close ABOVE $84.60, and a conservative target of $80. Beyond $80, look for additional support in the $79-$78.50 range.