💔 $LAB just dumped 7.7%, short opportunity?
- Given the scale of the dump and accompanying volume, this may not be the final bottom, but a relief bounce is likely before the next major move.
- I expect a possible bounce towards 1.52–1.64 as shorts take profit and buyers attempt to fill the inefficiency. Watch for rejection here.
- If the price breaks above 1.64 and holds, the short-term bearish bias is invalidated; then, upside targets are 1.89 and 2.25.
- If the price gets rejected around 1.52–1.64, a short setup could be taken after confirmation, targeting 0.97, then 0.74, and possibly 0.68. Place your stop above the swing high of the rejection.
- Example short trade: Wait for price to reach 1.52–1.64, then see a reversal sign (such as a 5m/15m pin bar, bearish engulfing, or breakdown with high volume). Enter short on confirmation, targeting 0.97 first, then 0.74. Place stop above the local swing high of the rejection.
- Example long scalp: If price drops back to 0.74–0.68 and prints a strong bullish engulfing or long lower wick, consider a bounce play to 1.20 or 1.52. Stop should be just below the lowest wick.
- If price breaks below 0.68 on strong volume, expect more downside and avoid longs.
