With the Corona Virus outbreak we expect L'oreal to pull back after earnings , there are some concerns on how much impact the Corona Virus will have on L'oreal bussiness in China (which had a strong growth previous year).
We agree that the fundamentels off L'oreal are strong but the techincals are not looking that great, we had a false breakout on the daily chart after earnings & the RSI is looking overbought on the larger time frames. That's why we are expecting some profit taking next week.
We will start looking for shorts on Monday.
Short entry on a gap up: 272.5
Short entry on a gap down: 268.8
Short term cover area : 264
Good luck & i keep you guys updated
We agree that the fundamentels off L'oreal are strong but the techincals are not looking that great, we had a false breakout on the daily chart after earnings & the RSI is looking overbought on the larger time frames. That's why we are expecting some profit taking next week.
We will start looking for shorts on Monday.
Short entry on a gap up: 272.5
Short entry on a gap down: 268.8
Short term cover area : 264
Good luck & i keep you guys updated
Comment:
Looks like we are gapping around at 272.50 , will watch the level 2 closely to determine my short entry
Trade active:
We triggered a short from 269.8
Trade active:
Add some more short at 272.5