This trade is based on a failed opening auction rather than chasing strength. With momentum fading into lunch and buyers unable to extend the opening move, the short offered a favorable risk-to-reward setup targeting a retracement of the morning advance.
(Stop - Above the failed auction high.)
ServiceNow opened with a strong gap higher, but the initial push failed to attract sustained buyers, creating a failed opening auction. After rejecting the highs, price rotated lower and spent the late morning consolidating into lunch, suggesting the early momentum had been exhausted.
The preferred setup was to short the failed opening pop once buyers were unable to hold the opening range. The expectation was for mean reversion as trapped longs exited positions and buying volume faded into the lunchtime session.
(Stop - Above the failed auction high.)
ServiceNow opened with a strong gap higher, but the initial push failed to attract sustained buyers, creating a failed opening auction. After rejecting the highs, price rotated lower and spent the late morning consolidating into lunch, suggesting the early momentum had been exhausted.
The preferred setup was to short the failed opening pop once buyers were unable to hold the opening range. The expectation was for mean reversion as trapped longs exited positions and buying volume faded into the lunchtime session.
Trade closed: stop reached
Stopped out for a loss. sorry.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.