LYFT Two-Stage Trade Plan
Setup: Head & Shoulders Breakdown → Bull Flag Recovery
Based on analysis of multiple LYFT 15-minute and daily charts, we’ve identified a potential head and shoulders pattern forming with a neckline at $16.30. A breakdown below this level could trigger a short opportunity early in the week (Tuesday). However, if price holds or reclaims this level into Wednesday or Thursday, it could reestablish a bull flag pattern — setting up a strong continuation move to the upside.
This trade plan allows for tactical short exposure if the bearish breakdown occurs, while preparing to pivot bullish on a reclaim, turning a fakeout into a breakout.
Technical Breakdown
• Left Shoulder: Formed around May 20
• Head: Higher high around May 21–22
• Right Shoulder: Lower high on May 27
• Neckline Support: ~$16.30 (key pivot zone)
• Bearish trigger: Breakdown and close below $16.25
• Bullish trigger: Reclaim and hold above $16.30
• Volume context: Elevated volume near $16.30 suggests it’s a high-stakes decision level
Trade Plan A — Bearish Breakdown (Tuesday)
Scenario: LYFT breaks below neckline and triggers short opportunity.
• Entry: ~$16.25 on breakdown
• Stop: ~$16.50 (above right shoulder)
• Target 1: $16.00
• Target 2: $15.85 (full measured move from head to neckline)
• Risk/Reward: Strong 2:1 or better if risk is held tight
Rationale: Breakdown from neckline of head and shoulders pattern. Traders react bearishly, and momentum takes price lower into support zones near $15.90.
Trade Plan B — Bull Flag Reclaim (Wednesday–Thursday)
Scenario: LYFT shakes out below neckline temporarily but reclaims support, resetting a bull flag.
• Setup: Post-fakeout recovery; price rebounds off $15.90–$16.00
• Entry: On reclaim and close above $16.30
• Stop: Below $16.00 or the recent higher low
• Target 1: $16.65 (recent high)
• Target 2: $17.00+ (bull flag extension move)
Rationale: A failed breakdown traps bears and reverses higher. Reclaim of support confirms accumulation and trend continuation, potentially into Thursday or Friday.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.