02/08/2023 SMCI short opportunity -
Updated
Hi traders,
It appears that SMCI presents a favorable opportunity for shorts over the course of multiple days.
reasons
1. $92-$95 is a huge selling area.
2. The presence of a Gravestone Doji candle in today's market suggests a potential short-selling opportunity. This pattern often indicates that the sellers have taken control of the trend during the intra-day trading period.
3. Volume is trending down, which possibly means buyer exhaustion.
4. The underlying fundamentals seem to support this view, as the bond yield curve has contributed to a decline in the market today. Furthermore, the trend of major indices such as the SPY and QQQ has shifted to a bearish outlook as of today.
*The stock itself got a great analyst rating and the company is in the growth stage. I am expecting it may or may not, retract to T1 trendline.
It appears that SMCI presents a favorable opportunity for shorts over the course of multiple days.
reasons
1. $92-$95 is a huge selling area.
2. The presence of a Gravestone Doji candle in today's market suggests a potential short-selling opportunity. This pattern often indicates that the sellers have taken control of the trend during the intra-day trading period.
3. Volume is trending down, which possibly means buyer exhaustion.
4. The underlying fundamentals seem to support this view, as the bond yield curve has contributed to a decline in the market today. Furthermore, the trend of major indices such as the SPY and QQQ has shifted to a bearish outlook as of today.
*The stock itself got a great analyst rating and the company is in the growth stage. I am expecting it may or may not, retract to T1 trendline.
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