Trade Set Up: Scott’s Miracle-Gro $SMG

Scott’s had an epic run off the June lows and topped out in the low $80’s. The swift run up has left the stock vulnerable to a sharp pull back. Notice the volume / price air pocket from $79 to $74 where little support exists.  Price currently sits on its daily pivot point and on gap support. Should price fall from here, I’d expect a swift rug pull to the mid $70’s.  Alarm $79 for a head’s up that support has failed.  Target October expiration with October 80 Puts . The October chain is thinly traded so use limit orders.  Aim to take profits in the $75 to $74 area for a quick hit n run. This has been a strong stock and a fan favorite so this is purely a technical short set up if support does fail.

Spread the word?


Leave a Reply

Your email address will not be published. Required fields are marked *

Let's do this.

Subscribe to the Daily Profit Compass now. It’s 100% FREE.

Website powered by RapidWebLaunch