CLVS (Clovis Oncology Inc) has failed on the recent attempt to enter & hold within the massive late 2015 gap following a parabolic run/225% advance off the late June lows. As such, the stock offers an objective, yet aggressive short entry here for a swing trade down to the 26 area (T1 at 26.61) with a stop above 38.74. As the risk of going long or short a biotech stock due to the above average risk of large opening gaps from clinical trials, the suggested beta-adjustment for this trade is 0.50 (i.e.: one-half of a typical position size). Today’s breakdown below this 60-minute rising wedge pattern, confirmed with negative divergence on the PPO & RSI, help to confirm the short entry here on CLVS.
CLVS Trade Entry & Setup
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