This is not a stock I would really be looking to short but there are a series of technical events leading me to set a limit short entry.
This is also in consideration of the gap down in indexes that is the first evidence that a bearish phase may now be underway in stock markets.
Where "SRP" is on the chart looks like a "Right Shoulder" / "Last Point Of Supply" (Wyckoff) bearish shakeout .
That has been followed by a big gap down today to leave the upper area as a circled "island" with a gap and and gap down on both sides.
This island is effectively a higher time frame Evening Star candle pattern and is very attractive to shorters.
Interestingly at the open there has been a strong bounce and the gap has almost filled already.
That was a bear trap and I think it is what I have been calling a "Breakaway Shakeout" where the bounce has arrived just as momentum has increased to wriggle out traders trading the breakout.
And so I think the gap can fill before the bearish trend continues and I have a limit short there @ $791.38.
Reasonable chance it will get back to the 0.618 @ $793.22 that is just above the gap.
Worth noting also that this area is higher volatility whipsaw post earnings. And that is also positive for a tricky reversal 👍.
Not advice.
This is also in consideration of the gap down in indexes that is the first evidence that a bearish phase may now be underway in stock markets.
Where "SRP" is on the chart looks like a "Right Shoulder" / "Last Point Of Supply" (Wyckoff) bearish shakeout .
That has been followed by a big gap down today to leave the upper area as a circled "island" with a gap and and gap down on both sides.
This island is effectively a higher time frame Evening Star candle pattern and is very attractive to shorters.
Interestingly at the open there has been a strong bounce and the gap has almost filled already.
That was a bear trap and I think it is what I have been calling a "Breakaway Shakeout" where the bounce has arrived just as momentum has increased to wriggle out traders trading the breakout.
And so I think the gap can fill before the bearish trend continues and I have a limit short there @ $791.38.
Reasonable chance it will get back to the 0.618 @ $793.22 that is just above the gap.
Worth noting also that this area is higher volatility whipsaw post earnings. And that is also positive for a tricky reversal 👍.
Not advice.
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Priority trades, round the clock updates and a 1 hour technical video per week 😼.
Get the "heads up" at critical moments - don't lose your shirt.
$50 per month 👍🏻.
Contact: t.me/dRends35
And so I have exited at breakeven.