TK0421

High probability swing short set up on CRSP

Short
NASDAQ:CRSP   CRISPR THERAPEUTICS AG
Here is my short case on CRSP:

- at the top of trading channel started since Feb 2020
- over bought reading on RSI
- both PPO and RSI shows very clear divergence high

Starting building a position as it hits the top of the channel and scale in as it moves down. Impulsive break of the wedge should move it down to the support at $161. Reaction will be likely, consolidation or a minor bounce. Then, if it gets taken down, then moving down to the bottom of the channel which intersects with $145.80 horizontal support. If that breaks, it's going way lower since $110 and $131 area are pretty thin so the move will be probably pretty swift.
Comment: Despite of very bullish candle yesterday, today's reversal put it right back down into the channel. Proven to be a bull trap. We are still early in the trading session so we will see how it closes today.
Comment: Coming back down now for sure. Closed today at $189.46. Around 13% down from the high. Confirmed high level bearish PPO cross over today as well.
Comment: Break down. Closing below the light green trend line. Heading to the first target. Nothing but red candles since Jan 21st. Down about 18% from the all time high.
Comment: 23.23% down from all time high.
Comment: Down 35% since the all time high. Today, finally taken down $146 second target. Next target is the trend line. Reaction will be likely.

Comments

so far so good
+1 Reply
good analysis and prediction mate. The question is, will the support from 130 will react or it will go down than that?
Reply
TK0421 Kosta
@Kosta, My gut feeling is reaction and gap down. It is definitely a market trade so if the sell off accelerates, it is going to head lower for sure. Let me put up a weekly chart of CRSP so that I can explain my thought process. I am pretty new here and I can't add charts under trade ideas. I hope you will check it out!
Reply
Do you think now its a good entry point?
Reply
TK0421 mirza_g_95
@mirza_g_95, In general, no. It seems to be bouncing off of support. Break of today's low should do the trick. $147ish is a decent support too. My max bounce target is $182ish so that would be an objective short entry. Stop somewhat above. Stop would be depend on how far you are targeting.
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