CAN trade shortThe analysis is as follows
We have made a head and shoulders and broken the neckline
It appears that we are making an abc to the downside.
The wave A and B have finished and were incredibly clear.
Currently we are in the developing wave 3 of the wave C, and I assume that this will take us down to the 10$ mark. This 20 dollar mark is the 1.618 of the wave one of the wave C and the 0.8 fib retracement of the greater wave.
10 Is also an incredibly strong psychological number, hence why I assume it will move down to here.
I am assuming that it will move down to here by the end of the week.
Assuming this channel holds, we will see a minimum 11.64. A break from this channel could possibly discredt my wave count.
My only concern would be that the wave 5 of the wave 3 doesn't go as low as expected, but judging by the volume behind the earnings drop, I am going to assume that there is lots of bearish momentum behind this stock.
Longterm target is around the 5$ mark.
