Talk about lipstick on a pig…. short setups don’t get much better than this: A very steep, over-extended rising wedge pattern on the daily frame (with confirming divergences in place below and money flows about to go negative) with prices approaching the apex of the wedge pattern while at solid horizontal resistance on the daily chart plus a multi-year downtrend line on the weekly chart. Two key resistance levels just overhead also help to define an objective stop level as well. Fundamentally, the negative EPS (ttm) and meager 1% dividend yield doesn’t help the bullish case much either. With all that being said, even the best looking patterns don’t always pan out so I don’t ever fall in love with trade.
Short entry to be triggered on a break below the uptrend line, which will essentially be on any downside from where the stock closed today and with prices already at the tail-end of the typically breakdown point within the wedge and at dual-resistance levels (daily & weekly) to boot, the suggested stop on this trade will be on a daily close above the 25.00 level. For now, the first and only target is T1 at 20.05 but the final target may likely be extended to the 17.50ish area if AVP begins to get some traction and the downside and the broad market cooperates. Daily & weekly charts:
