GMCR (Keurig Green Mountain, Inc) will trigger a short entry on any move below 125.35 (5 cents below the 8/22 gap). T2 is my preferred swing target at this time with a final target (T3) at 84.02. Suggested stop slightly above the recent highs for those targeting T2 or T3 with a tighter stop suggested if only targeting T1.
GMCR was recently added as a Short Setup on August 8th with an entry to be triggered on a move below 112. The stock never did trigger an entry so the notes and previous charts on that setup have been moved from the Short Setups to the “Uncategorized” category (as untriggered trade setups never become Active Trades, hence, are not moved to the Completed Trades category). However, as with all previous posts, those recent posts on GMCR are still accessible by clicking on any of the “GMCR” tags, such as at the bottom right corner of this post.
The second divergent top highlighted on this 3 year daily chart of GMCR comes shortly on the heels of the recent, much larger divergent high (blue lines). Taken together, the bigger picture (dashed red line), shows a very powerful, divergent high going all the way back to February. Translation: I’m not looking for a quick trade on GMCR, rather a multi-month correction that will likely result in a drop well into the double-digits (a 33% gain if T3 is hit).
click here to view the live chart of GMCR