CELH is approaching the end of the channel (UPDATE)
As an update, CELH is still in the ascending channel which started around the last earnings report.
The last 3 similar rallies have lasted 45, 32, and 17 trading days respectfully so this one is still completely normal in length.
Rallies 1 and 3 corrected to the 33 daily moving average while rally 2 corrected to the 165 dma; importantly, all 3 peaked at the top of their channels with high RSI.
A risky, but much more lucrative trade would be to purchase puts the next time CELH hits the channel top (and RSI hits the top of descending wedge pattern); however, a more reasonable trade is to wait until the channel bottom is broken.
In my opinion, the price will probably continue upward for a couple of more days, hit the 105 area and then deeply correct downward to at least the 33 dma (then around $85).
My trading strategy is to wait until the top of the channel and purchase $70 puts expiring on October 15th, definitely higher risk, but the payout if/when the price returns the 33 dma is around 2,000-3,000% profit.
The last 3 similar rallies have lasted 45, 32, and 17 trading days respectfully so this one is still completely normal in length.
Rallies 1 and 3 corrected to the 33 daily moving average while rally 2 corrected to the 165 dma; importantly, all 3 peaked at the top of their channels with high RSI.
A risky, but much more lucrative trade would be to purchase puts the next time CELH hits the channel top (and RSI hits the top of descending wedge pattern); however, a more reasonable trade is to wait until the channel bottom is broken.
In my opinion, the price will probably continue upward for a couple of more days, hit the 105 area and then deeply correct downward to at least the 33 dma (then around $85).
My trading strategy is to wait until the top of the channel and purchase $70 puts expiring on October 15th, definitely higher risk, but the payout if/when the price returns the 33 dma is around 2,000-3,000% profit.