High probability swing short set up on CRSP

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.


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?
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!
Do you think now its a good entry point?
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.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out