Nice gap down below the former T2 support level today on disappointing earnings, where GMCR (Keurig Green Mountain Inc) made 4 tags including the initial hit back on Feb 5th. T3 remains the final target & with a gain as much as 32% so far today, consider lowering stops to protect profits. Although GMCR remains an Active Long Trade, it will be removed from the Trade Setups category as this gap below the T2 support level is too far to chase. Only a backtest of that level from below would offer an new objective short entry or add-on going forward.
GMCR is a good example of how even in a bull market, short trades with clearly bearish technical patterns from a longer-term perspective can work just like long-side trend trades lasting many months. This was as massive bearish rising wedge spanning 2 1/2 years with very strong bearish divergences in place before the breakdown. Previous & updated daily charts below.
click here to view the live, annotated chart of GMCR