While certainly a very aggressive, counter-trend trade, OSTK (Overstock.com) offers an objective short entry here following this most recent divergent high + minor trendline breakdown & backtest around the 87.00 level (edit: I had originally listed the entry around the 88 level instead of the 87 level. That typo has been corrected)
OSTK will be added as an Active Short Trade here with price targets of T1 at 61.70 & T2 at 48.90. The suggested stop is any move above 96.80. Due to the extreme volatile nature of OSTK & the fact this is a counter-trend trade, the suggested beta-adjusted position size is 0.50 (i.e.- ½ of a typical position size) to account for the above average gain (~30% & ~45%) and loss potential (~10%) on this trade. Best to pass on this one if it does not mesh with your trading style or risk tolerance. 60-minute chart below:
OSTK 60-minute Jan 8th
With the PPO still pointing up on the daily time frame, this divergence is still unconfirmed & the trend in OSTK is clearly bullish. However, should the bearish developments on the 60-minute time frame play out, that will confirm these divergences & result in a failed breakout to new all-time highs in Overstock, setting the stage for a much deeper correction. Also keep in mind that Overstock.com no longer trades based on their outlook as an online retailer, as was historically the case. The 500%+ near-vertical rally since August is a spillover from the cryptocurrency mania with OSTK’s transition into the cybercurrency arena.
OSTK daily Jan 8th