Financial stocks have been beaten into the dirt over the last several months, but have recently seen some relief. Many banks are largely overbought at this point and AMTD is no different while also hitting a resistance level. Placing short orders between $55 and $55.50 as we will see an initial gap up at open this morning. This stock could certainly continue to rise, but my money is on a significant drop in the next couple weeks. Best case scenario is we hit our target and form a nice reverse head and shoulders pattern allowing us to flip to long and ride a strong move back up. Alternatively we may see the prevailing trend continue and watch as stocks continue to find lows.
Trade closed: stop reached