Entry-price: $5.22
Price Target: $4.82
Stop-loss: $5.48
Position: short
Here were looking at a double top pattern which has already been confirmed(black circle). I identified this pattern a bit late leaving me with not a very good risk to reward ratio but, there are various reasons for I would still enter this trade. Around the second top of the double top pattern, a death cross(bearish) was made with the 20 SMA and 50 SMA. Recently, the price went under the 200 SMA for the first time since September and at the same time this 200 SMA is about to make a death cross(bearish) with the 20 SMA. I'm also expecting for that gap from October to be filled in the next couple of days/weeks. I placed my price target by measuring the distance from the top to the support line from the double top pattern. My stop-loss was placed at the $5.48 resistance level.
Price Target: $4.82
Stop-loss: $5.48
Position: short
Here were looking at a double top pattern which has already been confirmed(black circle). I identified this pattern a bit late leaving me with not a very good risk to reward ratio but, there are various reasons for I would still enter this trade. Around the second top of the double top pattern, a death cross(bearish) was made with the 20 SMA and 50 SMA. Recently, the price went under the 200 SMA for the first time since September and at the same time this 200 SMA is about to make a death cross(bearish) with the 20 SMA. I'm also expecting for that gap from October to be filled in the next couple of days/weeks. I placed my price target by measuring the distance from the top to the support line from the double top pattern. My stop-loss was placed at the $5.48 resistance level.