e.l.f. Beauty, Inc.Short
$ELF A MARKET Leader with clear signs of breaking down. Bearish
🚨#YUSUKE_ALERT🚨
ELF Potential Short Setup! 💄 Stage 4 Downtrend Emerging
Technical Analysis
Breaking below 200-DSMA and 40-week MA
Relative Strength (RS) line breaking long-term 21-SMA
Entering Stage 4 downtrend
Current Price Action
Last traded price: $144.76 (as of 08/12/2024)
Daily range: $143.78 - $151.76
Significant bearish momentum observed
Option Flow
Notable put activity:
140P 08/16/24: 164 contracts
143P 08/16/24: 253 contracts
147P 08/16/24: 257 contracts
Market Context
Leaders getting "shot down" one by one
Signs of market under distribution
Trading Implications
This setup suggests a potential short opportunity as ELF breaks key technical levels. The breakdown below major moving averages, coupled with weakening relative strength, indicates a possible trend reversal.
Risk Management
Consider waiting for a bounce to short
Key resistance levels: $152.5, $150, $147
Potential support: $139, $135
Action Plan
Monitor for continued weakness
Watch for failed rallies at previous support levels
Consider put options or short positions on strength
Set stop losses above recent swing highs
Traders should conduct thorough research and consider overall market conditions before entering any positions. This downtrend in a former leader could signal broader market weakness.
ELF Potential Short Setup! 💄 Stage 4 Downtrend EmergingTechnical Analysis
Breaking below 200-DSMA and 40-week MA
Relative Strength (RS) line breaking long-term 21-SMA
Entering Stage 4 downtrend
Current Price Action
Last traded price: $144.76 (as of 08/12/2024)
Daily range: $143.78 - $151.76
Significant bearish momentum observed
Option Flow
Notable put activity:
140P 08/16/24: 164 contracts
143P 08/16/24: 253 contracts
147P 08/16/24: 257 contracts
Market Context
Leaders getting "shot down" one by one
Signs of market under distribution
Trading Implications
This setup suggests a potential short opportunity as ELF breaks key technical levels. The breakdown below major moving averages, coupled with weakening relative strength, indicates a possible trend reversal.
Risk Management
Consider waiting for a bounce to short
Key resistance levels: $152.5, $150, $147
Potential support: $139, $135
Action Plan
Monitor for continued weakness
Watch for failed rallies at previous support levels
Consider put options or short positions on strength
Set stop losses above recent swing highs
Traders should conduct thorough research and consider overall market conditions before entering any positions. This downtrend in a former leader could signal broader market weakness.
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.