SWHC
Having reviewed price action in SWHC this week I see that it took the 5% risk for the last setup I posted, failing at the Fuzzy C support. So it’s off the TechncialTrades.net port now and I’m contemplating price action and the technicals.
I see that the technical pattern on the daily is clearly a Head and Shoulders, neckline break and test of neckline or Kiss of Death, selling away from resistance yesterday. Price is still above the Fuzzy C, having recovered after the stop out, and I see peanuts at mm forum is taking it short in the Port of the Week. And I think it’s a completely valid TA-based short. The logical stop for that is 13.50…..and if it trades that high this week, it’s likely going to rock n roll bullishly to new highs impulsively over the next few weeks. If one uses regression channels on the daily it shows a minor channel short is in the face of a larger recent channel long. Kind of rangebound forces. Clearly it’s going to move with volatility either way, so a straddle or strangle options play might pay well for this issue.
The bottom line for me is that I’m bullish on it while it is above 12.41 and extremely bearish on it if that support fails and price remains below 12.41. I’ll pass on another bullish play on SWHC at this time, but I will take it simulated short stop limit at $12.40 with a 6.5% stop and stop even if/when +8% green. There ya go, peanuts……I’m aligned with your thinking once again
Good luck!