This will be an excellent (and may I saw obvious) trade to look out for today. After a strong move post-earnings, we have already shown signs of buyer weakness at these levels.
Today we are looking for that squeeze and proof of buy side tapering at the top of our yellow and blue tapered buying continuation channels. They line up perfectly and will be wedging with strong orange buying - which is great confluence for me along.
If buyers are unable to continue higher using orange and fail to break yellow and blue, this means... If we can't go up, __________ (Hint: we go down!).
Will take this short on proof of tapering at the top of these channels and as we see in pre-market action we will be opening up right around these levels.
Come join us in the livestream to see this trade taken in real time if it presents itself!
So it squeezed up to $83 and I understand that with the short float so high it will take a few days for everyone to cover. But do you see higher highs before (mid to upper $80) before the lower gap gets filled?
TraderDaddyOG
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@alisalek, Yep that's 100% correct - there was 43% short float. Major squeeze and only time will tell when we can start to see those being covered and it can start to see some relief. It looks to be building a base in the $80's right now so another squeeze up wouldn't shock me in the coming days.
alisalek
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I hope tomorrow that the short sellers that got lit up at $30-$40 and then those who shorted at $50-$60 are done covering. Seems like we have 3 cohorts of shorts being squeezed.l that need to get out. Hopefully all institutions are done though and this is retail foolishness buying.