The VHI short, which just hit the first target (T1) on Friday, is rapidly closing in on the second target (T2 at 13.45) where a reaction (bounce or consolidation) is likely. However, my current preferred target remains T3 at 11.00. With that being said, it is prudent to lower stops to protect profits and as this trade has already dropped as much as 18.5% from entry at the lows so far today, one might consider taking partial or even full profits at T2 if & when hit.
In the last update, it was stated that VHI could push up to the 17 area, which was resistance, before turning down. The stock then did exactly that, peaking at an intraday high of 17.10 on March 7th to kiss that resistance level and has fallen since. This is one of several examples of how trades based largely off the weekly time frames can take weeks or months to play out and how a scale-in strategy (as was recommended with this trade) is often preferable to establishing a full position at a single entry price. Original daily & weekly charts:
