Tuesday, June 29, 2021

BLI Stock Short



Looks like a solid short setup. Noticed on 6/27/21 but waited for confirmation today 6/29/21. This stock has awful options, so I shorted the stock. Since the equity markets have a strong bullish bias, thanks to the Federal Reserve and QE Infinity, shorting is very difficult, so we initially went in very light.

Target is the 61.8% retracement of the yellow range at 41.52.
Stop is above the recent swing high at 51.24.

Entered short 20 shares at $46.85
Stop 52.50
Target 42.00
R:R = (46.85-42.00):(52.50-46.85) = 1:1 not great but this appears to be a high probability setup.

Here's what I see:

  • Trend Line resistance, see thin downward angled white line
  • 78.6% Fibonacci resistance on the green range
  • Stochastics Overbought
  • AB=CD Resistance, see 2 thick upward angled white lines
  • Bearish Engulfing
  • Doji gap down
  • Close below 8ema, 6/25/21
  • Lower High/Lower Low
  • Close below 8ema, 6/29/21
  • Close near candle bottom


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