THC will trigger a short entry on THE NEXT drop below 186.30 with the next objective short entry or add-on to come on a solid break below S1 (183.47).
THC daily Sept 9th
The daily chart above has five price targets, so the suggested stop would be commensurate with one’s preferred target(s), using a favorable R/R of 3:1 or better. THC has come full circle since this last short trade posted back just under a year ago (click to view), with the stock falling to just above the original final target (T3) but covered just below the lows from the April 7th “covering all shorts, going fully long” statement, along with THC putting in a big divergent low at that time, providing a 30% profit on that previous short trade. (Sept 27, 2024 entry chart below).
THC daily Sept 27th
This time around, my targets are more aggressive, based on both the longer-term (weekly) charts of THC as well as the broad market. The reason for waiting for the next intraday break below 186.30 is that the stock briefly broke down below the uptrend line immediately after the open today, but quickly whipped back up onto the trendline. As such, another break below 186.30 will take the stock back below the uptrend line again & based on my analysis, the next breakdown will likely stick. If not, that’s what stops are for.
Should THC take out the downtrend line & 186.30 level to trigger a short entry, the stock still has what I call BOD (benefit-of-the-doubt) support just below, around 183.47. As such, my preference would be to take a starter (1/2) position on the next break below 186.30, adding to a full position if & only if the S1 support level is clearly taken out.
Note: RSOTC.com was down due to a technical glitch earlier today, with the error now resolved.