I was asked what I thought was a good entry and target price for shorting the Dow Transportation Index. My answer, as if often the case is "it depends". One possible entry is at or near the top of its downtrend channel whch, at the moment, is around $81. If I were to try to catch the top of the channel I'd only short it if it showed some weakness after it's reached the top of the channel. A bearish candle or two would be great.
One thing that I don't like about that strategy is that the index would be back above the June lows and the 200-day moving average. I'd be worried about those levels becoming support. So if I wanted to hang on to this position for a while I'd wait for it to close under the 200-day moving average again and then short it. My stop would go just above $80.
As for targets -- I don't see much support on the way down. There's a bit around 75, some more around 73 and then what looks like pretty solid support just above 68.
