A Quick stock flip of 20$ movement -3 days max!

2020年12月5日

So this one is purely technical and simple as it gets.
We are looking at Splunk stock - if you are not familiar with it its a data analyzing software company , machine data platform mainly... but we don’t really care about fundamentals on this one -this is a pure technical move.
Stock had bad earning released last week and fell from its highest high at 225 all the way to 152 and went up to 161.
if we look at 3 factors we can understand the reversal is going to be fast and strong :
1. POC - the point if control -the "demand " is at 184$ meaning the spread between 184 to 161 needs to be retraced and volume will need to accumulate there -in simple words stock will have to climb its way back up to 181$ acc to the demand
2. GAP - we all know gaps need to be filled and where there is gap there is "market curiosity" and the stock will need to travel through the gap before it really completes its downward trend.
3.FIB levels - so we waited after the stock dropped on Thursday and we let the dust settle to see there is no further downside from the selloff FOMO it experienced - once that stage is done we put our FIB retracements and look at the 50 line as the main line for indication because we are talking about a SHARP drop so the 50 line will usually be touched in these cases and not the 38.

So basing on these 3 simple indicators and along with the fact we are talking about a huge STABLE company (has also salesforce as its client and many more), and the earnings were not as bad as sit looks - earnings expectations were 613 million and company brought 599 million -missed by 9 cents a share, we are looking at a very easy play -limit order on the 160$ line and we take it to 180$ line from there we watch the expected convergence that will happen on 180 and see if we need to pull out or keep riding it to 200$ - the stock will reach 200$ there is no doubt ! the only questions is will it bounce right back to 200 or bounce to 180 and then slowly climb to 200 - well who cares :) if we buy enough on the 160$ line and take to 180$ that is already 20$ per share or 12.5% on our money in less than 3 days so that’s good enough for me .
we flip stocks on a short time periods of up to 3 weeks and not more, if 5 trillion dollars a day exchange hands, we need to get a part of that action :D
Marry Xmas and safe trading from FDGT

HERE is the weekly view on same chart :

2020年12月9日

註釋

FDGT are holding on the position open - epect the correction up to monday