Stock Analysis: APLD (Applied Digital Corporation) !📊 – 30-Min Chart
📉 Setup Type: Rising Wedge Breakdown (Bearish Reversal)
🔻 Trade Plan (Short Position)
✅ Entry Zone: Below $7.27 (Breakdown Confirmation)
✅ Stop-Loss (SL): Above $7.49 (Key Resistance Level)
🎯 Take Profit Targets (TPs)
📌 TP1: $7.00 (Support Level)
📌 TP2: $6.69 (Key Demand Zone)
📌 TP3: $6.60 (Major Support & Psychological Level)
📊 Risk-Reward Ratio Calculation
📉 Risk (SL Distance):
$7.49 - $7.27 = $0.22 risk per trade
📈 Reward to TP1:
$7.27 - $7.00 = $0.27 (1:1.2 R/R)
📈 Reward to TP2:
$7.27 - $6.69 = $0.58 (1:2.6 R/R)
📈 Reward to TP3:
$7.27 - $6.60 = $0.67 (1:3.0 R/R)
✅ Favorable Risk-Reward Ratio with strong downside potential!
🔍 Technical Analysis & Strategy
📌 Rising Wedge Breakdown: Price is breaking below a bearish wedge pattern, signaling weakness.
📌 Key Resistance Holding: $7.49 acts as a strong rejection zone, reinforcing downside potential.
📌 Volume Confirmation: Increasing sell volume confirms bearish sentiment.
📌 Momentum Shift: Loss of upward trend momentum suggests possible trend reversal.
📉 Trade Execution & Risk Management
✔ Wait for Confirmation: A 30-min candle close below $7.27 strengthens the breakdown.
✔ Adjust Stop-Loss: Move SL to break-even ($7.27) after hitting TP1 ($7.00).
✔ Partial Profit Booking Strategy:
✔ Take 50% profits at TP1 ($7.00) and let the rest run toward TP2 & TP3.
✔ Adjust Stop-Loss to Break-even ($7.27) after TP1 is reached.
⚠️ Risks & Considerations ❌ Fake Breakdown Risk: If price reclaims $7.27, the short setup could be invalidated.
❌ Market Conditions: Low-volume breakdowns may lead to a bounce.
🚀 Final Thoughts ✔ Bearish Setup – Strong downside potential.
✔ Rising Wedge Breakdown – High confluence setup.
✔ Favorable Risk-Reward Ratio – 1:3.0 toward TP3.
💡 Stick to the plan, manage risk, and trade smart! 🚀📉
🔗 #APLD #ShortTrade #BearishBreakdown #TradingView #ProfittoPath 💰📊
