SHORT MSTX

SHORT MSTX - High-Probability Setup

I'm sharing my analysis on MSTX with a short position in mind, leveraging a calculated risk/reward approach. Here's the breakdown of my thought process:

Technical Overview
Current Price: $101.53
Stop Loss: $118.14 (16.75% risk)
Target Price: $62.28 (38.45% reward)
Risk/Reward Ratio: 2.3
Key Indicators & Analysis
Bollinger Bands: The price is showing volatility contraction, which often precedes significant price movement.
Moving Averages: The red MA suggests bearish momentum aligning with a trend reversal.
Volume Profile: A spike in volume near recent highs indicates selling pressure.
Reasoning
This trade is based on the hypothesis of a potential breakdown below the $100 psychological support. Given the steep climb followed by a pullback, there is a strong probability of further downside toward the $60-$62 zone, where previous support lies.

The stop loss at $118 accounts for a potential false breakout, while the target ensures a favorable reward relative to the risk taken.

Let me know your thoughts or if you see other opportunities in MSTX! Always open to feedback and discussion. Happy trading!