Today appears to be a downward breakout from a triangle pattern in DISH as price falls below the lower rising trendline of the triangle. The long-term (secular) trend has been downward, which adds some weight to the downward thesis here. The target is approximately the maximum depth in the triangle projected downward from the breakout point.
Lastly, having a sector trending in the same direction as a bearish stock helps improve the odds on a play. Here, the communications sector (XLC) of which DISH is a constituent, has shown significant weakness over the past few weeks, even though it is bouncing slightly today.
I might open some put credit spreads to play this to the downside over the next couple of weeks.
Lastly, having a sector trending in the same direction as a bearish stock helps improve the odds on a play. Here, the communications sector (XLC) of which DISH is a constituent, has shown significant weakness over the past few weeks, even though it is bouncing slightly today.
I might open some put credit spreads to play this to the downside over the next couple of weeks.
SquishTrade