UnknownUnicorn182749

Short NVR for break lower

Short
NYSE:NVR   NVR, Inc
This 120m chart of NVR shows an ongoing triangle within a larger degree A-B-C correction. I'm counting the sharp , impulsive move off the high as wave A, followed by a wave B triangle. If the stock breaks lower from here, profit targets would be the 61.8% and 100% Fibonacci extensions of the distance traveled in wave A. Initiating a short position at 3050 for a move to 2650/2300.

Note that these patterns occasionally involve a false topside break, where early shorts get squeezed out of their position before the move lower. For this reason, I'm trading a small position to start and will look to add as the trade plays out. Prepared to ride a move higher in the short-term, but a sustained rally through 3450 will cause me to reevaluate the position.

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