I traded 2 stocks today with my A+ setup: ROKU and NVDA. This post will show why I decided to go long NVDA, when I entered, how I moved my take profits levels and when I exited the trade.
RROKU faced a number of really negative news catalysts in September and the stock dropped 45% in one month! The stock has been consolidating in October showing signs of seller exhaustion. Additionally, the short interest spiked substantially recently which might result in a potential shorsqueeze if the price starts moving higher. What happens next will determine its next big move.
Friday’s ROKU drop was truly spectacular. The stock fell almost 20% from Thursday’s close. In this post I will try to explain why I decided to take this short, how I used DMI Oscillator to manage my short position and when I decided to exit the trade.
This is my A+ set up for a perfect short-selling day trade. This trading opportunity had all of the ingredients I am looking for: an important news catalyst, pre-market gap, inability to rally at the close, bearish tape, and the 3m ‘red’ price (via DMI Oscillator).