This Stock Keeps Making Short Screens

Its been a while since I found a chart worth gracing with the proverbial honey hole…

This set up keeps making short screens. Its a very nice setup as EBS is bumping its head under the 50 day after a large run-up.

There is also what looks to be an imperfect or head and shoulders top (the arrows show the shoulders) with the neckline falling near $21.00

I would consider stops just above $24.00, a tight stop for a large position (lower blue line), or a 1.5*ATR stop near $25.20 (upper blue line) for a better chance of winning, but with a smaller position.

My exit would be to cover at the lower range near $21.00, or wait until RSI2 gets oversold. A longer term play could hold out for a break of $21.00 which would initiate a Head and Shoulders breakdown. In this case, I’d look to exit benath $18.00.