Oversold, possible reversal and reentry of broadening formation

Vroom fell back on market weakness but is very oversold on the SlowStoch. Fib levels provided which have acted as support throughout its short trading history. While the fib marker in purple may provide strong entry, seeing this re-enter and base in the broadening formation would confirm h higher highs (or at least higher lows) are in store.

Trade fermée: ordre d’arrêt atteint:

No position, if you had entered this trade entry would have gotten you as high as 54.44 after entry at 52.67, but it was not able to close within the channel and was rejected. Subsequently it broke through the entry and stop loss fib and looks headed to retest the one below at 44.91. May be a worthwhile short at this point.

Commentaire:

The short idea played out and then made a major reversal and gap up on a price upgrade. Nice move. We will see if it can reclaim the broadening formation and revisit.