Trade Idea: Bearish Swing
The stock price reached a new 52 week low the day before Christmas at 123.00. Since then price has been in a strong pullback, where price is now trading in a narrow range between 140.00 & 145.00. During the pullback, the market has created two big gaps. This is significant as 90% of gaps will be filled. In addition, the stock price has been virtually stagnating this week. Therefore, this gives rise to a high probable swing trade.
Scenario: Price rejects a break from final resistance level . Look for a swing to 130.00 & 125.00 respectively.