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.
Note
The bounce was quite a bit higher than the 0.786 retracement oveshoot ratio from the 0.618 and so it looks more likely that BLK will remain rangebound rather than break to the downside.And so I have exited at breakeven.
Your FA guru can't read a chart💭
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I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Your FA guru can't read a chart💭
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.