Given that we are in the midst of a massive stimulus spree in order to attempt to stave off the effects of the pandemic, it is by definition rather difficult for short calls and short positions to come to fruition to come to pass. Even a situation such as Boohoo.com (BOO), has proved to be a rocky ride since the market was alerted to issues at the fashion house.
Therefore, the follow on decline this week to date from the peaks towards €19 has been interesting, not only because so far the technical call of a bearish rising wedge is working. It is also worth noting that short interest in the stock has also been added to. The initial downside here is seen as being the floor of the wedge / 50 day moving average towards €15.80, with the €12 zone at the 200 day moving average a possibility if the wedge pattern is snapped.
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