After peaking in January COKE then sold off but found support near its 38.2% Fibonacci Retracement Level near $59 (point A) and then preceded to rally over the next few weeks on low volume (point B).

COKE then ran into strong resistance as it rallied back to its 61.8% Fibonancci Retracement Level near $65.50 (point C) calculated from the early Janaury 2003 high to the low made during the first week February.  This was then followed by an even stronger sell off in which COKE dropped from $65 to $47 over the next three weeks (points C to D).

Thus the best time to short a stock is to wait for it to bounce after it makes its initial sell off and then try and catch the second stronger move downward.  When looking for stocks to short make sure they are exhibiting these three characteristics.

1.  The stock has already undergone one significant move downward after making a top.
2.  The stock then finds support at a certain Fibonacci Retracement Level or Moving Average and rallies on poor volume.
3.  The stock then stalls out near its 38.2%, 50% or 61.8% Fibonacci Retracement Level after rallying.

By following these simple rules investors will have a much higher success rate when attempting to short stocks.