Massive multi month head and shoulder with clean neck line break and retest on earnings day.
Also a slanted right shoulder - an even more bearish sign within the head and shoulder patterns, and typically signifies insider sell off after initial peak.
Also descending triangle within the right shoulder - added probabilities of downside
Given neck line has broken to the downside, the percentage target downside (measuring height of head) gives us an approximate 10 dollar target.
I believe this is not unlikely at all given current fears taking hold. earnings were good and I believe in the company long term. just continue to dollar cost average on the way down. More shares for me that's for sure.
TraderGG100
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@logicalBoa41898, Yes you may be right, no one knows for sure.
ncontelmo
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you will get burnt on your puts. this will not move that fast if it goes down. they had good earnings. the market will also need to fail for it to fall that far that fast. Terrible trade
TraderGG100
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@ncontelmo, I could be wrong but it's not a terrible trade. Probability is in favour of shorts at least according to TA.
I've shorted this and am thinking of going back in. The denial is real but charts don't lie. With inflation fears and volatility on the rise all these Billion dollar money losers will only go deeper in the red.
TraderGG100
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@rchavez14, Anything can happen so managing risk is key. E.g a false break is always at play.
D3vil666
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$10 haha funny bro
orclconsultant1
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I agree with your comments, and as we progress through the year, people will take their losses, and this is a great candidate. I actually would bet, we see $8 by October.
TraderGG100
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@orclconsultant1, Yes, to me atleast it seems, that there's a heck a lot of denial out there... if so only a matter of time where denial will lead to capitulation.