That drop probably woke a lot of people up. $SOXLB fell 14.07% in a day to 55.94, sliding all the way down from 66.91. Now it’s just one step away from the 24-hour low of 52.43.
Anyone holding it probably isn’t sleeping well right now. Sell, and you risk selling at the bottom; hold on, and you worry there could be another leg down. Put simply: there isn’t much support below 55.94. A break below 52.43 would mean a new low; only a rebound to the midpoint line at 59.67 would give the bears some breathing room.
I wouldn’t chase a short at this price. I’d wait and see if it rebounds to around 59.67 first—the risk is completely different at a different entry point.
Direction: Watch for a short; don’t chase one right now. Reference range: 55.94–59.67; wait and reassess if it rebounds to around 59.67. Invalidation level: above 66.91. Target: 45.19. Risk level: high. Based on an entry around 59.67, the loss to the invalidation level would be about 7.24, while the gain to the target would be about 14.48, for a risk/reward ratio of about 2.0.
At this point, do you think shorting is going with the trend—or chasing after it?
For reference only, not investment advice. Pay attention to position sizing.
$SOXLB
#SOXLB #TradingOpportunity
Anyone holding it probably isn’t sleeping well right now. Sell, and you risk selling at the bottom; hold on, and you worry there could be another leg down. Put simply: there isn’t much support below 55.94. A break below 52.43 would mean a new low; only a rebound to the midpoint line at 59.67 would give the bears some breathing room.
I wouldn’t chase a short at this price. I’d wait and see if it rebounds to around 59.67 first—the risk is completely different at a different entry point.
Direction: Watch for a short; don’t chase one right now. Reference range: 55.94–59.67; wait and reassess if it rebounds to around 59.67. Invalidation level: above 66.91. Target: 45.19. Risk level: high. Based on an entry around 59.67, the loss to the invalidation level would be about 7.24, while the gain to the target would be about 14.48, for a risk/reward ratio of about 2.0.
At this point, do you think shorting is going with the trend—or chasing after it?
For reference only, not investment advice. Pay attention to position sizing.
$SOXLB
#SOXLB #TradingOpportunity