RH: Cycle completion after earnings rally? Short

RHNYSE

Description

⋅ Mar 26, 2021 3:06 PM

quicklook: High probability that RH has come to the conclusion of its year-long rally. Long-term outlook on the left, short-term on the right.

Since this idea covers weeks-months, won't go too in-depth but will try to post weekly updates

Entered short position. on the pop to 575. Let's see how this goes

Trade closed: stop reached

⋅ Apr 6, 2021 8:31 PM

Forgot to update this one - still exploring the bearish trade for the long term but the low float here could carry RH to 2.618 fib level (~630)

Comments

gsenthilanand

⋅ Apr 6, 2021 8:10 PM

Hi @myceliium,

Is this strategy still valid ?

myceliium

⋅ Apr 6, 2021 8:30 PM

@gsenthilanand, I closed my short position and have been watching for a re-entry. At the moment the long term strategy is valid but RH could rally to 630 in the short term considering the low float

gsenthilanand

⋅ Apr 7, 2021 1:20 AM

Thanks @myceliium.

myceliium

⋅ Apr 19, 2021 11:23 PM

@gsenthilanand, with RH @ 640 I have began to reconsider the short position. I would say this is a much safer place to enter a bearish position

gsenthilanand

⋅ Apr 20, 2021 1:49 AM

@myceliium, Thanks a lot for remembering to update this post on current setup.

Would you recommend a PUT or going short on common stock ?

myceliium

⋅ Apr 20, 2021 1:51 PM

@gsenthilanand, I mainly trade option so the 600P 6/18 is looking most attractive to me right now

mhmokhtari2000

⋅ Mar 28, 2021 12:20 AM

agree