After milking the bulk of the largest rally since the post-IPO plunge on SPCX (SpaceX) with a near-perfect entry & exit for a quick 14% (or 18%, for those that rode into earnings & sold at the top of the T5 zone on the post-earnings pop), it’s time to run it the other way. Once again, this should be considered an aggressive trade, especially entering into a position on Friday, with two extra days of overnight risk.
SPCX daily Aug 7th
SPCX offers an objective short entry here at the bottom of the recent final (T5) price target zone on recent long trade (still resistance). The price targets for this short trade are T1 at 121.46 & T2 at 117.20 (basically, T3 & T2 from the recent long trade, along with the uptrend line off the recent lows, which comes in with T2 for this short trade). SPCX also has potential (unconfirmed) negative divergence on the 30-minute chart (same time frame we just traded the long bounce on). 30-minute chart below with the price targets for the short trade in yellow & a max. suggested stop of 132.88.