To BE or Not to BE... Short!

Rationale & Thesis

This is a technical short trade on Bloom Energy (BE), based on a clear rejection of a key resistance level. The thesis is that the upward momentum has exhausted itself, and the price is now positioned to move toward a significant support zone. This trade aims to capture the downward movement from this confirmed high, following the path of a new downward trend.

he recent price action of BE shows that the stock's rally has met a critical barrier. The price has surged to a major resistance trendline and has been firmly rejected. This rejection is clearly marked by the red arrow on the chart, indicating a high-probability reversal as sellers regain control.

Trade Idea:

Entry Signal: The short position is initiated at the price level of the red arrow, following the validation of resistance.

Exit Strategy: The primary profit target is set at the green support line, located at approximately $56.37.