SINA is an interesting stock to study.
We can see below that it is in a downtrend. The question for is is to either short a bounce to resistance or a breakdown below support?
The pyramid data is shown below. Very negative, but the EV pattern tells us that a bounce might be shaping out.
Let's first study the breakdown. We can see that the trade data look acceptable.
However, a "holding days" sensitivity analysis tells us that the R/R will be negative early in the trade, which could put us under great stress. The Table below indicates that an breakdown on volume will attract buyers at least early in the trade, probably because the stock will be extended to the downside.
Shorting a bounce however look more interesting
We can see below that the number of holding days will not affect the R/R ratio
The Table below tells us that the stronger the bounce, the better the trade for a 3% stop level.
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