$FSLY - SHORT - Head and Shoulders

2 בספט׳ 2020

FSLY is in a position trying to purchase tik tock. Trump has given a deadline of November 12th. This is a deadline for after the elections to avoid any major fall out that could influence the elections.
Right now the stock has formed a Head and Shoulders pattern but doesn't have a huge sell off. It is still in an upper channel that can take this stock to $150.00 before you see a reversal. Probably not a good trade.

We could see news come up within the next few days suggesting the deal can't go through because of China not allowing the licensing of the software to go through... blah blah blah. This would be a great catalyst to a selloff.
*INSIDER SELLING* - Director sells -%50 of his shares 16.692 million dollars worth September 1st. Why sell now if it can still continue to $150? or is he just reducing risk by half?

This is not confirmation that H&S pattern has confirmed until we break below the $72.55 with volume. However I am in a partial position hoping for a reversal using a tighter stop loss than below. Will look for next short at $150.00 if this pattern doesn't form.
Entered trade $91.01
Stop Loss $103.10 / tighter stop loss $99.89
Will add to short position with more confirmation with a break of the trend line in next two days (approx $85.00)
Take partial profits at:
Target #1 - $72.00 or 100 day MA (sell 1/2 position)
Target #2 - $50.00 (sell 1/2 position)
Target #3 - $29.00 (close position)

8 בספט׳ 2020

הערה

Gapped down today, but tried to rally up. After hours shows it moving down again to under $80. Will watch for the next bounce at around $72 to take partial profits. Currently this is now a momentum trade and will be forced out of position if it breaks the moving average. Still looking great as a short position. Potential for $65 as next target.

10 בספט׳ 2020

הערה

$87.10 pulls me out of the trade with a small win. But this is making a perfect ascending wedge that is very bearish signal that shows this should drop within next two days and likely could break down quickly.