CERNER CORPORATION (CERN)
The stock of Cerner Corporation (NASDAQ:CERN) offers an interesting short term play to the downside.
Price keeps pushing up in an attempt to break out to the upside and keeps getting rejected. At some point the bulls will get disheartened and begin selling, and the supply/demand internals that I can measure with my market forecasting tools indicates that this selling will likely kick in next week. That would take price down first to take out the stops below $71, which would trigger a wave of selling and a retest of the liquidity pool near $69 per share.
Any price in the green zone would be considered a shorting opportunity for this forecast. If price takes out the highs of the green zone then stop loss orders should be triggered.
While the odds for the target zone (Red Zone) to be tested are a bit lower then I would normally look for, this trade should pay off with a 2 to 1 or better outcome.
At that level of profit, a win rate of just 34% would produce a break even result. So think of this as a lower probability/higher reward entry possibility.