$SOXL I still favor countertrend shorts. Sorry—the stop loss (SL) in my previous post was too close to the entry.
Notably, open interest (OI) has been steadily declining as prices surge. This divergence suggests that the recent rally is likely driven by short covering (a short squeeze), rather than new leveraged longs, making the current setup vulnerable to rejection.
Buyers are showing strength, but the risk-reward ratio (R:R) for opening new longs at this immediate resistance level isn't attractive.
$SOXL Short setup
· Entry zone: 68 - 70 (current resistance zone)
· Stop loss: Above 74
· Take profit: 65 and 61
Support me by trading here 👇 $SOXL
Notably, open interest (OI) has been steadily declining as prices surge. This divergence suggests that the recent rally is likely driven by short covering (a short squeeze), rather than new leveraged longs, making the current setup vulnerable to rejection.
Buyers are showing strength, but the risk-reward ratio (R:R) for opening new longs at this immediate resistance level isn't attractive.
$SOXL Short setup
· Entry zone: 68 - 70 (current resistance zone)
· Stop loss: Above 74
· Take profit: 65 and 61
Support me by trading here 👇 $SOXL
