Short CHDN
As you may already know, most of the market is in correction mode.
Trade idea: All casino stocks are in a downtrend (e.g. LVS , WYNN, CHDN, etc.). They are part of the consumer cyclical category. In particular, try shorting
CHDN as it is lagging the others. Few things to take note of:
Trade idea: All casino stocks are in a downtrend (e.g. LVS , WYNN, CHDN, etc.). They are part of the consumer cyclical category. In particular, try shorting
CHDN as it is lagging the others. Few things to take note of:- Death cross 50d MA crossing over 200d MA from above
- Trend line break with a confirmed daily close down
- Not the best, but a pretty decent SHS formation
- Volume is increasing
- Although RSI is low, it can stay there for prolonged periods of time
- Overall market sentiment is negative
- I see that total shares available is about 13.6M, so if it dumps, it will move down fast
- If you can short it directly, it's best to use calls as protection due to low float; otherwise, short it via puts with an appropriate expiration date or you can sell bear call spreads
- $200, $160, $120, $106, $91, $86, $58, and $30 are support targets in descending order. Height of the SHS formation is about $55. Neckline is roughly $255. So $200 (255 - 55) is roughly the measured target for profits. I believe we can get there pretty easily in a short period of time. You could use 3% or 4% above the neckline (roughly $270) as a stop.
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