Over the weekend in our Focus List Review report we discussed Celsius Holdings (CELH) as a potential double-top and Punchbowl of Death (POD) short-sale set-ups. The stock attempted to break out from a 63%-deep cup, what we refer to as a punchbowl, after what is technically a one-week handle on the weekly but a short flag on the daily chart. That breakout has failed, and we indicated that CELH could be shorted on a breach of the prior 110.22 left-side peak of the large punchbowl formation which is then used as a selling guide. Below is the weekly chart shown in that specific report.
Today CELH gapped below the 110.22 left-side punchbowl peak and is currently trading just below its 10-day moving average as we head into the close. This would trigger an aggressive secondary short-sale entry at the 10-day line which now becomes a covering guide for any portion of a short position taken at that point. We would prefer that this be an add point to a position taken closer to the 110.22 level. We would now watch for any break below the 20-dema confirmation of a possible Punchbowl of Death short-sale set-up as discussed in our books, Trade Like an O'Neil Disciples (Wiley 2010) and Short-Selling with the O'Ne3il Disciples" (Wiley 2015).
Short-Sale Set Up - Celsius Holdings (CELH) Follow-Up 8/29/22
|Published:||29 Aug 2022 15:37 ET|
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