Applovin With The Short Setup

Applovin (APP) bear flag identified on the Trading Block Terminal. Clean break to the downside, following almost two months of consolidation.

The weakness is obvious in this stock when it is in a sector (technology) that has outperformed the market in every time frame and up nearly 10% in the short-term.

Its industry (software) is also quite strong and outperforming the market in both the short-term and mid-term, which also makes APP difficult for shorting as it has everything going for it, even though it has proved itself unable to capitalize on it.

Needless to say, it is hard to justify getting short a stock, no matter how bearish it has been, when the market has been so kind to its sector and industry. And with it down seven straight, days, it starts to to be a potential dead-cat bounce play in the short-term.