Here’s the short story on Shake Shak ($SHAK) – January 18, 2023
SHAK
Shake Shak ( NYSE: SHAK ). They report earnings in basically a month. This is what I like about the stock, it’s done going up and I don’t think it’s done going down. This has been a heck of a move from bottom to top, 40 some percent in less than a month.
Now we get kind of this climax top right at the open. We get big volume here; big massive volume here, and then the stock, in very short order, is up 15 percent. Do you think maybe you are going to get some of these folks who bought on this massive volume day taking profits because I do?
One of the things that traderbren mentioned today in our forum was, this is a bearish engulfing pattern. That is very, very different from all of these trades. How many days in a row did this stock go up? Ten days, eleven days? I don’t know, you count them, it went up a lot.
Now, we’ve got the bearish engulfing pattern, where the stock opens up. It opens above the prior day’s intraday high and closes below or at the prior day’s intraday low. So you get what I am talking about, today’s prices literally do engulf the prior day, this is like, completely in the box.
And so this is a key reversal pattern that we don’t see that often. But when you do, it is real money, you can see what happened back here in a similar kind of deal. Where the stock had a really good run, 30 percent in a month, something like that. And then you got this big down day, it reversed the prior day, and then we just keep going, and so now we are up here again.
This would be my suggested trade, I will probably take this tomorrow, I didn’t see it today, I was busy. I would be shorting this stock. Hopefully, the stock will even gap up in the morning, a lot of times they do that, but not always.
I would be shorting this stock, and your risk is a move back above 58.00. I seriously doubt you are in danger of that happening. This is a shortable stock, and look for it, at the very least, to fall, I’d say another 10 percent.
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