If you can buy the bottom, you can short the top too.

Recently, I posted a topic explaining how to buy the extreme low of stock with low risk and high potential reward.

The opposite is also true. If you are able to short a stock at or near the top, that can be a very lucrative trade. And using the unambiguous checklist-based reversal trade setups, I often identify such opportunities. I do that using scans. 

During the weekend I ran the scans for Breakout-Short and Headwind-Short and this stock came in both of them. It is overvalued and may give a very low-risk opportunity. India does not allow shorting stocks for delivery. So one may take an option of a stock futures trade. A Short-Call-Vertical seems more appropriate to me.


Its industry is weakening rapidly. Overvalued stock with poor earnings quality. Bearish Headwind and Breakout in the daily. You might consider taking a partial position and then adding to it if the weekly Memory support is also broken. The stop is just above the recent high in the daily chart.

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