MNDY has consolidated for 4 days post-earnings. Three bearish candles were observed, followed by a bullish candle closing above the previous two days. This is a bullish signal. The key level of $261 has been surpassed - this is the level of the Volume Point of Control (VPOC) across the three bearish days where sellers were present. Price is also holding a significant level at $255.50, which was the resistance dating back to the COVID bubble collapse. Price tested this level on Friday, and buyers instantly stepped up. This is demonstrated by the first 65-minute candle that had increased Average True Range (ATR), clearly showing buyer interest.The setup for this name is straightforward: an Anchored VWAP (AVWAP) trade. Price has tested the AVWAP to earnings release, as well as the key level. Price offers a slim spread. The entry point is a break of the High of Day (HOD) at $263.79, with a stop loss at the Low of Day (LOD) at $253.51, below the AVWAP.
Trade targets are based on fair gaps and liquidity levels:
First target: $300 (round number), a 3.5R target
Second target: $313, a 4.85R target
Remember to monitor stop loss orders and manage risk accordingly.
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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.