We’re back with two new swing setups, carefully selected from today’s market activity. One tech name is approaching overbought territory and flashing warning signs, while a travel giant is quietly staging a breakout after a bullish wedge formation.
| Ticker | Direction | Entry Trigger | Stop Level | Target Range |
|---|---|---|---|---|
| DOCU | Bearish | Stall at $79–81 or break < $78 | > $82 | $73 → $68 |
| BKNG | Bullish | Breakout > $5800 or higher low | < $5600 | $6300 → $6700 |
🔴 Bearish Reversal Pick – DocuSign (DOCU)
Why It’s At Risk:
- DOCU is trading near multi-week highs ($79–81), facing heavy overhead resistance.
- Momentum is waning: ChartMill flags medium-term technical risk, and recent candles suggest exhaustion.
- Volume has thinned and RSI is approaching overbought—classic signs of a potential fade.
Trade Ideas:
- Equity Short: Look for rejection at $79–81 or break below $78. Place stop above $82. Targets: $73 (gap fill), then $68.
- Options: Bear put spread—sell $80 put, buy $70 put (October expiry) to capture downside while capping risk.
🟢 Bullish Reversal Pick – Booking Holdings (BKNG)
Why It’s Turning Higher:
- BKNG broke out of a multi-week falling wedge with strong volume—a textbook bullish reversal pattern.
- Momentum indicators are turning up, and price is reclaiming key moving averages.
- Analysts see potential continuation toward all-time highs if $5800 holds.
Trade Ideas:
- Equity Long: Buy on breakout continuation above $5800 or a higher low support retest. Stop below $5600. Target $6300, stretch goal $6700.
- Options: Bull call spread—buy $6000 call / sell $6500 call (October expiry). Limits risk while capturing directional upside.
Final Notes:
- These setups reflect high-probability swing conditions—ideal for traders seeking multi-day to multi-week moves.
- Always confirm price action with volume, use stops, and size positions relative to your risk tolerance.
Stay nimble—and trade with conviction!