FRC daily July 31st
FRC (First Republic Bank) offers an objective short entry here around current levels (46.88ish) as it sits just below resistance on the daily chart. FRC was discussed in this post a couple of weeks ago as it was one of numerous regional banks on my watchlist that fell too much, too fast following my price alert in order to post an objective short entry before I could get the chart marked up, uploaded and compose a post with notes & details on the trade. I did go ahead and added FRC as a Short Trade Setup and I have been monitoring the stock closely, waiting for the near-term overbought conditions as a result of that one-day post-earnings plunge to moderate, which they have.
I was also waiting to see if FRC would regain what was my first target (former support, now resistance) level, which so far, the stock has failed to accomplish after several attempts over the last week or so. As such, I’ve decided to establish a short position in FRC with a suggested stop above 48.10, which is slightly above the former first target, now R1 (resistance) level. This relatively tight stop (in relation to the two price targets, T1 & T2) give this trade an attractive R/R or nearly 4:1 to the first target and better than 5:1 if targeting T2 (the final target).
Remember, many of the Active Short Trades are in the regional banking sector. Just as with long-term investing, proper diversification amongst positions when actively trading is extremely important in the mitigation of risk due to the potential over-exposure to any one sector.