Richemont (CFR): A Short Opportunity

Richemont price has been making lower highs with resistance from August, price has formed a rising wedge. On the hourly chart price is showing oversold and can be expected to rise with lower trendline giving support for a brief period. If price reaches the resistance line & rejected go short, alternatively if price breaks below the support line of the wedge.

Take profit target is 10% drop or when price forms a swing low after the 10th of November. From this point the bounce will be assessed for a re-entry short upon forming a bear flag or if price is rejected at the trendline.

Stop-loss: If price closes above the resistance line on a weekly basis it will be time to close the short & go long.

Comment:

CFR was rejected on the resistance twice, now watching for a push against the support line and breaking of the same.

Trade closed: stop reached:

By closing the week above the resistance line stop-loss was activated. Price has enough momentum to press higher against the upper trend line of rising wedge. Short opportunity will be re-assessed when price makes a swing high on daily time frame.