SWHC short
Thanks to Peanuts from MM forum for the heads up on this one.
Nice Head and Shoulders formation on the daily. Risk/reward as shown vertically on the chart. The stock has more than tripled this year, so one might expect some profit-taking from that nice bullish growth. Fibonacci retracement wise, if one looks for a retracement of the move since May, one could look for the 50% retracement of 10.35 or the 61.8% retracement of 9.30. The 9.10 area is solid price support, being the ascending triangle breakout area from late August. Supporting the SHS play is the volume action, which was high during the formation of the L shoulder, lower for the formation of the head, and lower still for the formation of the R shoulder. Definately one to consider short at current levels. If the r/r isn’t good enough then one might look for intraday resistances today to improve the ratio. For example, shorting the intraday pivot today at 13.85 with a stop over the R shoulder 14.05 is risking only 1.4% to target 29%. R/R is over 21. Nice numbers. I note the early pop to 13.96, so a short at 13.85 would be filled.
