dRends35

BLK - Short The Big Guns

Short
dRends35 Updated   
BATS:BLK   BlackRock, Inc.
This is not a stock I would really be looking to short but there are a series of technical events leading me to set a limit short entry.

This is also in consideration of the gap down in indexes that is the first evidence that a bearish phase may now be underway in stock markets.

Where "SRP" is on the chart looks like a "Right Shoulder" / "Last Point Of Supply" (Wyckoff) bearish shakeout .

That has been followed by a big gap down today to leave the upper area as a circled "island" with a gap and and gap down on both sides.

This island is effectively a higher time frame Evening Star candle pattern and is very attractive to shorters.

Interestingly at the open there has been a strong bounce and the gap has almost filled already.

That was a bear trap and I think it is what I have been calling a "Breakaway Shakeout" where the bounce has arrived just as momentum has increased to wriggle out traders trading the breakout.

And so I think the gap can fill before the bearish trend continues and I have a limit short there @ $791.38.

Reasonable chance it will get back to the 0.618 @ $793.22 that is just above the gap.

Worth noting also that this area is higher volatility whipsaw post earnings. And that is also positive for a tricky reversal 👍.

Not advice.
Comment:
The bounce was quite a bit higher than the 0.786 retracement oveshoot ratio from the 0.618 and so it looks more likely that BLK will remain rangebound rather than break to the downside.

And so I have exited at breakeven.


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