$OPEN false breakdown, time to long?
Opendoor Technologies Inc, one of ARKW's holding, had a false breakdown yesterday(4/12) and it seems to be wanting to retest some resistances.
Pros:
- RSI Bullish divergence on the 4hr chart.
- Seems to have found support with 5 EMA
- Price is close to the bottom of the BB, making it a good R/R trade
Cons:
- Volume has been decreasing, 4/12 breakout had a massive volume compared to the average. (Could be a false breakout to trigger stop-losses which are likely set on (3/31) low
- The stock follows ARK's trend, if ARK's ETFs underperform, it is unlikely that $OPEN will do well.
Critical levels:
Supports: 19 / 20.33 (5EMA)
Resistances: 21 / 22.95 (20MA) / 26.34 (50 EMA)
My position: Entry 21.02 / PT 28.5 / SL 19. Return so far -6.38%
Pros:
- RSI Bullish divergence on the 4hr chart.
- Seems to have found support with 5 EMA
- Price is close to the bottom of the BB, making it a good R/R trade
Cons:
- Volume has been decreasing, 4/12 breakout had a massive volume compared to the average. (Could be a false breakout to trigger stop-losses which are likely set on (3/31) low
- The stock follows ARK's trend, if ARK's ETFs underperform, it is unlikely that $OPEN will do well.
Critical levels:
Supports: 19 / 20.33 (5EMA)
Resistances: 21 / 22.95 (20MA) / 26.34 (50 EMA)
My position: Entry 21.02 / PT 28.5 / SL 19. Return so far -6.38%
Comment:
Tech sector shows weakness and its due for a short term retracement of 1-3%. If OPEN closes above 20 it's still bullish. 4/14
Comment:
OPEN not looking strong, a descending triangle is forming, if broken below we could easily see the previous low at 17.
Trade closed manually:
Stopped out at 19. This trade is closed. 9% loss.