Cerence Inc.Short
CRNC - Nov 24 Extremes To Median Corrections
Updated
Strategy - Extremes To Median Corrections
- 21 Nov Earnings: Sales are the lowest in the past seven quarters. No clear justification for the 172% spike, likely also contributed by a short squeeze.
- I expect price to normalise towards the median or the H1 SMA100.
- This is also a bet that greater force (RUT) will be unable to breakthrough it’s current key level and breakdown.
- Grading B 6points
The idea - No idea, it is a pure technical play +1
- Stocks fundamental are also aligned +1
- Greater force (Broad market)
- Confluence in direction +2
- Technical positioning
- Three elements +2
- Price within consolidation
- There is long momentum candle to signal entry
- Volume has died out
- Risk reward is 1.99 - 2.88R
Trade closed manually
10 Dec
Lost this trade as price suddenly reversed. When price refused to break lower for 4 days, I should have close the trade early or maybe reduced my position.
I pegged this as a bad trade as I did not have a proper plan when I was in the trade. What patterns to close early etc. Also this is a double bad trade because I accidentally bought more short positions when I was attempting to close the trade.
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