Investors should understand the stock is extremely overbought and starting to become a high reward short trade.
Shares of Smith & Wesson Brands Inc (SWBI) continue to surge higher, caught up in a short squeeze, mixed with a Reddit-fueled pop. Investors should understand the stock is extremely overbought and starting to become a high reward short trade. Using the technical calculation known as a ‘measured move’, the likely high reward, low risk short on Smith & Wesson is $40.50. This would be a mass extension move and great swing short for a retrace as low as $25.00.
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