claystation4

Short EVH on breakdown of support

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NYSE:EVH   Evolent Health, Inc
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Yesterday heavy volume and a break below support in the ~23 area signaled a further bear move in EVH. The doji that formed at the close near heavy support levels signaled the possibility of a reversal however. As markets open today EVH is moving down below support yet again and I look for a continued move toward the 18 area. I will set a stop at 25, but will also monitor price action closely considering yesterdays supportive close. Considering EVH's weak earnings (there hasn't been much of a move toward profitability in the last year) and its book value below $10 a share it seems ripe for a downside move with limited upside potential in the near future. If you follow my 10000 USD base account recommendations I advise a 100 share short position and 22.65
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