ICPT has been a high-flyer biotech stock.
It broke down some days ago.
Both the stock and the sector are not too good. In terms of pyramid data
How do we trade the short side: on a breakdown below $150 or on a pullback?
We can see below that shorting a breakdown did not work in the past. I believe that a push down has been attracting buyers and the stock reversed up.
The best is hence to short a bounce.
A sensitivity analysis on the entry price shows that shorting between 157.5 and 163 is acceptable.
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