Welcome to the first in a series of articles for current trades. Today we are looking at $SDC – Smile Direct Club. If the short float percentage of 32% holds, this will only add fuel to a breakout up and out of this beautiful consolidation. Entry on the pullback to the 8ema is a great entry. The Flow index algo which tracks dark pool and block trades was buying hard and with price action.
SDC- Call Volume
Taking the Jan 15 2021 $13 strike for and average of $1.53 will have returned a nice 10% gain in the first day, we are holding as a swing looking for at least 50% gain to begin scaling out.
Smile Direct Club is currently in the Weekly Keltner Channel cloud, but with the volume and short interest we feel it should have no problem getting through to our first target 1.27 Fib extension of $14.63, scaling out of our position at that time, leaving a runner to the 1.618 Fib level of 15.14
$SDC – Smile Direct Club Multi Time Frame Squeeze
Smile Direct Club is in a squeeze on the daily, 3 day, and medium compression squeeze on the 4d. With the histograms being light blue this is a strong indication when the squeeze fires it will be to the long side. If you have interested in learning more about Multiple Time Frame Squeezes click here.