LYV daily Aug 6th
LYV (Live Nation Entertainment) was posted as a Short Setup on July 29 & went on to trigger an entry on a solid break below the uptrend line two days later on July 31st. The stock gapped down the next trading session to hit the first target of 21.62 for a gain of 8.0%. As expected, the stock has experienced a reaction by pausing or consolidating around the T1 level since then and has started moving lower today. T2 at 20.14 is my current preferred target for this trade and with prices starting to move below that first target level today, I do think LVY has a good shot of getting there soon.
Looking at the chart I would expect a decent reaction off the T2 level, especially if we get there soon. At this point consider one of two stop options: A more conservative stop just above the bottom of Friday’s gap, around 22.40 or a more liberal stop above the top of the gap, around 23.20. The latter, more liberal stop would only make sense for those that took the entire position on the initial trendline break as that would assure at least a breakeven on the trade but a loss for anyone who waited until after the earnings induced gap to initiate a position.