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TGL Fintech with a push discounted 96% from ATH LONGI am watching TGL for a short squeeze. A recent pivot high in the past year was about 37 and the ATH of 168 was the winter and spring of late 2022 and early 2023. This is an app that matches merchants and consumers with incentives to both to deal and make transactions. I believe that it has been heavily shorted while in a persistent trend down. Relative strength has been rising and the TTM triggering. A spike in relative volume was more than 50X. I have taken a position and have an unrealized profit of 22% however, I expect more and will add to the position given a dip from the high of 8 down to 6. For the time being the targets are 10.5 and 12, where I will take off 25% of the position at each level. IF TGL can squeeze and maintain momentum over the weekend, next week could be a bigger move.
NASDAQ:TGLLong
by AwesomeAvani
Bounce Risk for Selling ShortStocks that are falling rapidly often have the illusion that they will never stop falling. The panic that settles into the mindset of an investor who is watching his or her profits and capital erode overnight can overwhelm a stock’s price action. So for a brief time, the stock can behave outside of what the chart patterns would suggest was reasonable. But the higher risk is always the bounce. Stocks can bounce without warning. Huge up days that form in a downtrend can cause significant losses for short sellers. A stock bounces because it hits a price point where: 1. b uyers are waiting to go long 2. where large-lot short sellers are preparing to exit Monthly and yearly highs are areas where there is risk for a bounce. These bounces are often caused by small-lot investors and traders perceiving this as a good place to buy a stock that has corrected. The old adage, “buy low and sell high,” prompts the uninformed to buy as a stock is running down without understanding the dynamics of a downtrend. So they buy at monthly and yearly highs when they are called out by the various news and trading chat forums: “XYZ has hit its 52-week price, this is a good time to buy XYZ.” Another big bounce area is far more important: the monthly lows and yearly lows. This is the price range where the wiser bargain hunters and bottom fishers lurk around. They know that low area is solid support and that a downtrending correction isn’t going to last on a strong company. Therefore, lows pose even bigger risk of bounces that actually can reverse the downtrend, especially if the steep descent has been underway for some time. A stock may nearly pierce through a sturdy support level, reach the yearly low and then suddenly make a V-shaped short-term bottom or shift sideways depending upon the strength of the stock and company. These sudden changes of trend catch many short traders unaware and create larger losses than monthly and yearly highs. Sideways patterns also create sturdy support levels where large bounces can occur for the rapidly falling stock. Moving averages for long-term trendlines are another area of strong support where bounce risk is high. How to avoid bounces for selling short: Identify each area where a stock could bounce. This includes the highs and lows of sideways action from prior years. Identify long-term moving average support on weekly charts. Identify monthly and yearly the highs and lows. After you have identified all support areas, determine if this support will be weak, moderate, or strong. Weak support will seldom cause problems for a falling stock and usually a resting day, at best, will form. Moderate support can cause a bounce that can take out tight stop losses and strong support can potentially wipe out a wider stop loss for a bigger loss. It is important to calculate the point gain to the lean side when selling short because bounces can occur before the support is actually touched. And do not be fooled by the falling stock that runs just beyond the support level--often a small run beyond the lowest low is just a ‘gottcha’ sell short entry for bargain hunters. This is the area where you will find the larger reversal candle patterns. Selling short is a faster-paced trading condition. It can be more lucrative with faster profits than the upside at times, but you must have plenty of experience to watch for high-risk areas in the downtrend and a strong mental attitude that allows you to cut losses quickly.
NYSE:DACEducation
by MarthaStokesCMT-TechniTrader