Why Short? This is exactly the kind of stock that I would want to pick up at the bottom red line, I think.
As long as there is no significant divergence and market conditions remains without change (volatile at this period).
you may be right but.
1) very big picture it is short.
2) when a trade is 7% in the money, i will take profit/watch/manage... and certainly will not lose money
3) there is no guarantee the red line will hold... it has to break at some point and this point is becoming closer relatively)