The daily chart of GMCR outlines the trade here. We shorted GMCR up around the 65-dema during the latter part of last week in and around the peak of the potential right shoulder within the overall pattern. Note how GMCR has undercut the October 4th low of 82.40 on an intra-day and that this undercut did indeed spark a temporary rally back up towards the 84-85 level. The stock however is staging a very quick "undercut & rally" and is now failing on the rally part of that equation, pushing below to the 80 level at 9:34 a.m. "beach-time here in LA.
While profits or partial profits could be taken at these levels, depending on how one wants to handle the trade based on their own individula risk tolerance, trading preferences, and price objectives for the trade, it is also possible for the stock to just push lower from here a la NFLX a few weeks ago and at least test the 200-day moving average in a couple of days or less. Obviously nothing is 100% certain on the short-side, as those of you who play on that side of the fence on a regular basis likely already know.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
