This sets up well-defined trades to the short side for active investors and traders.
Its post-earnings reaction points to lower levels still. I see this as an opportunity to leg into new swing trade short positions.
From here, traders could look to enter new long positions for a play higher into the high $180’s.
The picture remains solid to hold the stock for a move into the high $30’s.
Traders and active investors could take advantage as the stock is forming a major ‘base’ out of which it now appears ripe to rally.
Although it’s had a bumpy ride so far year-to-date, the current juncture sets up a buying opportunity for the active investing and trading crowd.
In short, active investors and traders should respect the recent price action for a potential bounce trade.
Although I believe in this company’s longer-term growth story, my intermediate-term concerns are rising, yet I see good reward to risk for a trade.
From where I sit, it remains technically overbought and could see a next downside target about 10% lower before better support is found.
In short, active traders and investors could look to either short the stock or buy puts or put spreads using options.