Unity Long - Swing trade with risk/reward ratio of 1.98
Yesterday, Unity ($U) shares plummeted 17.45% after the release of news that they were acquiring ironSource ($IS) for $4.4B.
The NDO 50 indicator on the bottom was green for the day, showing that there was an incredibly abnormal volume yesterday. Interestingly, despite this large selling volume, the short volume was actually fairly low for the day, as shown by the NDO 50 indicator with the short volume being red.
To me, this suggests that while a whale exited their position yesterday, causing the large volume, as if the market viewed this event as bearish, shorting volume should theoretically have increased, while in reality it decreased.
Additionally, there is a strong support around the 32 level for the 15 minute and 1 hour charts, which around the current price of $U. Around this level, there were multiple bullish engulfings yesterday on the 15 min timeframe, and one doji on the daily chart, confirming this support and showing that there is potential for a bullish reversal to fill the gap created yesterday.
My pivot levels indicator shows that the current price is at a strong pivot level, and the nearest pivot on the upside is around 40, so its fair to say that this trade has a large upside.
The NDO 50 indicator on the bottom was green for the day, showing that there was an incredibly abnormal volume yesterday. Interestingly, despite this large selling volume, the short volume was actually fairly low for the day, as shown by the NDO 50 indicator with the short volume being red.
To me, this suggests that while a whale exited their position yesterday, causing the large volume, as if the market viewed this event as bearish, shorting volume should theoretically have increased, while in reality it decreased.
Additionally, there is a strong support around the 32 level for the 15 minute and 1 hour charts, which around the current price of $U. Around this level, there were multiple bullish engulfings yesterday on the 15 min timeframe, and one doji on the daily chart, confirming this support and showing that there is potential for a bullish reversal to fill the gap created yesterday.
My pivot levels indicator shows that the current price is at a strong pivot level, and the nearest pivot on the upside is around 40, so its fair to say that this trade has a large upside.