Deeeeee opeeeee. I feel like I've either been going mad or that I've just been letting a short bias get the best of me. Although my short ideas have worked out pretty well, it's a reminder that there's still potential somewhere. I've had Red Hat on a back burner watchlist 1) because the setup is a complex one that, I've seen maybe 3 times, & haven't been able to catch one before a breakout & 2) Just so happens to line up right around the time RHT releases earnings (09/19). If anyone saw TPR right after earnings - that's a base comparison for this type of chart but I'll leave a screenshot to justify really how accurate it is. Starting off w/ the gap, I use the 55 low MA from the first candle after the gap - because obviously after a huge gap up / down, the moving average curves UP if price makes HIGHER lows (bearish), or slopes DOWN if the start of past 55 candles makes LOWER lows (bullish, but also depends on overall trend). If that's confusing - might have to try it yourself & mess around but, any bubble or unsustainable price action isn't defined by the highest high, as long as the lowest low can still find an equilibrium. Little too off topic but yellow vertical line (if not a few candles after) should call for a dip. Nothing serious, but I wana see the 20 EMA do a double take & drop back to flirt w/ the 55 MA before a surge. Could get wild.
I DON'T think we'll see a 5-15% move tomorrow, but it most definitely is possible. With the JPM downgrade (ironic because I'm 59321x bearish on financials) - I'd be more than willing to jump on calls if tomorrow closed with a big range bullish candle. Down to $132 after hours w/ 45 min to earnings call. I don't see that lasting long, but I'll be humbled to see what happens either way
UnknownUnicorn3450309
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Another good call.. you are the man.
DerekD_
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@TheCaveman, Lol preciate it mane! I definitely see a dip back down to $149 or so. Keep your eye on it!