Short-Sale Set Up - SMCI
| Published: | 16 Feb 2024 14:08 ET |
Supermicro Computer (SMCI) did an about-face after it tried to definitively clear its $1000 hurdle. When a company fails at a major century mark, it can become a good short candidate, especially after a climax top. Look for entries on any weak rally attempts today and in subsequent days. After a climax top, a stock will often bounce just above its half-way point between the climax top and the low it reaches in the ensuing days. That makes for a good short entry point, using the climax top as your covering guide. Concerns about the AI market being priced in contributed to SMCI's selloff.
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