What does the chart say?

I had a nice learning experience today watching the way SM traded today.  Many oils and other names followed the same type of pattern/move today.

This was the chart at 9:40 am this morning.  As we can see the trend had changed.  We had a small gap down and a lame bounce into now resistance.  A short could have been taken here with a stop over high of day

Here is how it played out today

Interestingly enough, I never saw a short set up at #4 until recently.  The stock traded to the top of the range.  It looked like it wanted to head higher but it was at the top of the range.  This is the fade spot.  When the stock doesn't follow thru on a "long look" and its at resistance you can take a short here.  This stock gave a nice and clean move to lows.  Sometimes they break to new lows like WLL today and others it tests to near or at the lows.  Either way there is a nice and easy trade here.  To an untrained eye this could be difficult to see.  (It took me almost 2 years to see it)  Now it is one of my favorite looks.