This stock is in a very precarious situation — any further downside opens the doors for much lower prices. Check out Tripadvisor (TRIP). (April 10, 2014)

I want to look at TripAdvisor ( NASDAQ:TRIP ) here because this stock is in a really pretty precarious situation and I’ll bet you can see what it is. The black line, the 200-day moving average, big bounce here before, and look at the resistance lines, you’ve got to keep flattening them out here. The stocks been losing a little bit of momentum to a point where the 50-day moving average, at one point was trading just sideways, now it’s just a little bit up. So you know what you’re really seeing here, just to get an overall view of the stock is, it’s just kind of flattening out a bit even though we’re seeing these zigzags.

So here’s what you want to do, first what I’m not doing is telling you to buy this stock because it’s at support. The way the market was trading, tomorrow we could see more downside, we could definitely see more downside tomorrow. What I’m suggesting is, if the stock falls below the 50-day moving average and does not immediately get back above it, then I think you can short this stock; because then you’ve got to look at this as not a blow off top, you can look at this is a very, very meaningful trading high. Now it’s reverted to the mean of the 200-day moving average, and now it’s seeking the downside area, because now we’ll have the top, now we’re back to the average price over the last 200-hundred days, we’re looking to see how far down this can go. So this is a critical area right here tomorrow morning and I just want you to be aware of that.