I am back in this trade a second time in about a week. Last time I bought puts which doubled on the drop. This time I am shorting the common stock and will add as price increases for a nice average. 1,000 shares short $58.10 will add every $1.50 increase equal number of shares. Way overbought and getting ahead of itself. I will also buy puts in the $60's
Likely a failed double top way overbought on technicals this stock is due for a pullback $45 or under
A large base has presented a bullish divergence as a harmonic deep crab completes above the reclaimed 50 SMA support.
Cal-Maine Foods Inc produces and sells shell eggs. Its main market is United States. The company's product portfolio contains nutritionally enhanced, cage-free, organic, and brown eggs. Cal-Maine Foods markets the shell eggs to a diverse group of customers, including grocery-store chains, club stores, and foodservice distributors. The company's brands are:...
NASDAQ:CALM broke out of the 4+ month ascending triangle chart pattern and close above resistance 4 days in a row before the news shock after the close yesterday. The stock gapped down 5+%, held around the opening print for around 2 hours and gravity took over from there. Remember, anything could happen when you enter the trade. Use stop losses and risk...
NASDAQ:CALM is forming a 4 months ascending triangle. Multiple tests of resistance line have taken place. A breakout from this consolidation will lift the price off the 200 moving average and set the tune for the next leg up. There is a considerable resistance around $51 and if cleared, price should reach chart pattern price target identified on the chart.
Sell now or wait till the price gets closer to the resistance line to trade at a lower risk or higher R/R ratio.
Tell me again about that Efficient Market Theory
The trade described on the chart shows what we did. Just follow us !
Short @ 48.60 Stop Loss - 49.50 Profit - 47 and 2nd Target 46.25 Breakeven - When price move to 1:1 @ 47.80 Analysis based on Supply and Demand
Order Preview CALM Buy 1 Put Vertical Limit Debit Buy 1 Nov17 44/44.5 Put Vertical @ 0.45 Limit Debit DAY to Open 0.10 - 0.50 Sell Sell 1 CALM Nov-17 44 Put to Open 0.15 - 0.35 Buy Buy 1 CALM Nov-17 44.5 Put to Open 0.45 - 0.65
The company's efforts to restructure have not come across well so far, trailing its competitors. Cal-Maine has a long way to go, I believe, to fairly compete with larger players. I am pessimistic on the company's 3 month prospect and have a $35.00 PT. Stop set at $45.00 but is flexible up to $50.00. I believe the company will report lower guidance on Monday.