Hello Everyone,
A huge oversold situation could be in the making.
FRC is Extremely oversold on fears of bancruptcy or being bought out by JPM soon.
While such case is highly likely, the bank can still rise on any good news as all the bad ones are already baked in the current price.
JPM's CEO is already in the talk with other banks on possible solution for FRC , so this could lead to some good news about the bank and have the price rise. This can make a margin-call for many shorts and lead to a nice retracement back above $20.
Still, it is extremely risky trade, but this is where the highest rewards can be made, so trade at your own risk. Good luck to everyone.
A huge oversold situation could be in the making.
FRC is Extremely oversold on fears of bancruptcy or being bought out by JPM soon.
While such case is highly likely, the bank can still rise on any good news as all the bad ones are already baked in the current price.
JPM's CEO is already in the talk with other banks on possible solution for FRC , so this could lead to some good news about the bank and have the price rise. This can make a margin-call for many shorts and lead to a nice retracement back above $20.
Still, it is extremely risky trade, but this is where the highest rewards can be made, so trade at your own risk. Good luck to everyone.
Comment:
Trade is going according to plan. If the $20 resistance breaks, next one is around $28 and possibly $40 next. It all depends on the news right now.
Trade closed manually:
I don't trust that there are good news to come. Closing the trade here at $15.5. Too much of a risk and mostly flippers. Even if the stock goes up, the fundamentals are too bad now. Most likely the bank will be either heavily diluted or sold out at a huge discount. Good luck to all.