LYFT Two-Stage Trade Plan

LYFT Two-Stage Trade Plan

Setup: Head & Shoulders Breakdown → Bull Flag Recovery

Based on analysis of multiple LYFT 15-minute and daily charts, we’ve identified a potential head and shoulders pattern forming with a neckline at $16.30. A breakdown below this level could trigger a short opportunity early in the week (Tuesday). However, if price holds or reclaims this level into Wednesday or Thursday, it could reestablish a bull flag pattern — setting up a strong continuation move to the upside.

This trade plan allows for tactical short exposure if the bearish breakdown occurs, while preparing to pivot bullish on a reclaim, turning a fakeout into a breakout.


Technical Breakdown
• Left Shoulder: Formed around May 20
• Head: Higher high around May 21–22
• Right Shoulder: Lower high on May 27
• Neckline Support: ~$16.30 (key pivot zone)
• Bearish trigger: Breakdown and close below $16.25
• Bullish trigger: Reclaim and hold above $16.30
• Volume context: Elevated volume near $16.30 suggests it’s a high-stakes decision level


Trade Plan A — Bearish Breakdown (Tuesday)

Scenario: LYFT breaks below neckline and triggers short opportunity.
• Entry: ~$16.25 on breakdown
• Stop: ~$16.50 (above right shoulder)
• Target 1: $16.00
• Target 2: $15.85 (full measured move from head to neckline)
• Risk/Reward: Strong 2:1 or better if risk is held tight

Rationale: Breakdown from neckline of head and shoulders pattern. Traders react bearishly, and momentum takes price lower into support zones near $15.90.


Trade Plan B — Bull Flag Reclaim (Wednesday–Thursday)

Scenario: LYFT shakes out below neckline temporarily but reclaims support, resetting a bull flag.
• Setup: Post-fakeout recovery; price rebounds off $15.90–$16.00
• Entry: On reclaim and close above $16.30
• Stop: Below $16.00 or the recent higher low
• Target 1: $16.65 (recent high)
• Target 2: $17.00+ (bull flag extension move)

Rationale: A failed breakdown traps bears and reverses higher. Reclaim of support confirms accumulation and trend continuation, potentially into Thursday or Friday.