PLAY Short on Disappointing Earnings for a Day Trade

PLAY has a nice bearish daily chart, below all major moving averages fallen below the trendline (blue color), gaping all the way down from $52 to $41. The Earnings were below expectations and premarket now is gaping down below the major daily pivots I have drawn on the Daily chart which are $45.47 and the other major one $42.50. Provided that it stays close to the $42.50 pivot and doesn't fade too much premarket, it has a good high probability Short opportunity and room to fade until $37.43 and then $34.24. It needs good volume at the market open (min 500,000 shares in first 5 minutes of market open) and it should stay below $42.50 pivot.

Komentarz:

until now its consolidating premarket not fading further which is good, but it shouldn't be forming a 'base' i.e. a support line because that is bullish.

Zlecenie aktywne:

Got in PLAY Short as soon as it gave a pullback below the vwap, added, took two thirds profits now at 50 cents and 1 point, i have my last third set for near the daily pivot of 37.43. Nice easy trade.

Transakcja zakończona: osiągnięto poziom stop:

I got out of PLAY using the 20 ema on the 5 min chart as my backstop, it just hit it at 40.68, my entry was 41.68. Nice exit with 1 point profit. Hold on to your winners guys and using your 20 ema on 5 min chart as your back stop !