SONO daily - short opportunity for fast trade
SONO is bearish7weak fundamental stock therefore would be traded only on a short position.
SONO after a huge drop started to consolidate in price but didn't move too much and now it is forming a bearish pattern rising wedge. Price is ready for a strong move because above it is BigRed and the trend line which will act as strong resistance, and below are other MAs.
SONO is between BigRed and other MA which is neutral and indicates we are ready for a strong move.
Volume is lower on this leg up therefore it cant confirm price action.
RSI is at 62 which is mid overbought area.
MACD histogram ticking lower which is bearish while both lines are above zero line which is bullish.
Overall: even though SONO didn't break out of the pattern, if it falls below the smaller red line it will trigger a short position because of huge resistance above the price (BigRed and trend line). If it pops above the trend line then the short position will not be triggered. The reason for a short position is, in fact, this is a very bearish pattern and this is bearish/weak fundamental stock therefore if it starts to drop there is a high possibility of a major drop toward a lower trend line.
SONO after a huge drop started to consolidate in price but didn't move too much and now it is forming a bearish pattern rising wedge. Price is ready for a strong move because above it is BigRed and the trend line which will act as strong resistance, and below are other MAs.
SONO is between BigRed and other MA which is neutral and indicates we are ready for a strong move.
Volume is lower on this leg up therefore it cant confirm price action.
RSI is at 62 which is mid overbought area.
MACD histogram ticking lower which is bearish while both lines are above zero line which is bullish.
Overall: even though SONO didn't break out of the pattern, if it falls below the smaller red line it will trigger a short position because of huge resistance above the price (BigRed and trend line). If it pops above the trend line then the short position will not be triggered. The reason for a short position is, in fact, this is a very bearish pattern and this is bearish/weak fundamental stock therefore if it starts to drop there is a high possibility of a major drop toward a lower trend line.
Consistency is the key of success....
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