Positive earnings report. Strong consumer sentiment. Formation of a Bullish PEG candle. Notable sell-off in alignment with the broader market. The stock's performance offers potential for both long and short opportunities. Price retracement to the critical level of 159.50 (or rounded 160). A substantial deviation from this point is a bearish indicator. Long Setup:
Entry: Look for a bullish movement away from the 159.50 mark, supported by 15-min bullish volume and candlestick patterns. Key Level to Watch: A break above 165.30, which corresponds to the AVWAP from the earnings announcement. Stop Loss: Set at 157.66. Profit Targets: First target at 165.29 (scale out 50%). Second target at 167.75. Risk Management: After hitting 165.29, move the stop loss above entry for a breakeven scenario. Risk Allocation: 0.50% of the portfolio. Short Setup:
Entry: Anticipate a bearish price action that breaks below the 159.49 mark. Entry Confirmation: Rely on price action combined with volume metrics. Stop Loss: Set at the 162 pivot. Profit Targets: First target at 155 (scale out 50%). Second target at 150. Risk Management: After achieving the 155 target, adjust the stop loss to breakeven. Ensure there's significant volume during the break of 155 to anticipate a continued downtrend. Risk Allocation: 1% of the portfolio, given the prevalent bearish sentiment in the broader market.