Tornado_Trading

NLOK - Norton Life lock - Bearish Divergence

Short
NASDAQ:NLOK   NortonLifeLock Inc
Weekly:

On the weekly we see the prices go higher, while EFI and MACD Histogram diverge in relation to prices.
There is a ATR channel divergence as well, the high top goes well above +4 ATR, the top after that to +2,5 ATR and the current top to +2 ATR.

Previous pullbacks dip to somewhat below the EMA , around -0.5 ATR.
That would set the targets between 21 and 20.

Daily:
It shows a divergence here as well, with EFI and MACD-H. It also shows a divergence with Stochastic RSI , with a higher price top, Stochastic RSI turns on a lower level.
In my experience, this is a strong sign as well.

Entry would be:

23.39

Target 1: 21, 05
Target 2: 20, 05
SL: 24,68


R/R ratio: 1:2 for target 1
R/R ratio: 1:3 for target 2


The Stop loss is outside the 2 ATR channel, 1.5 ATR away from the current price.
Trade closed: target reached: closed the trade, target reached.