Sunday Prep 10/10 - $PAGS Need Exhaustion Move to the Downside

This is the extreme kind of move I really like. I believe they released earnings early and this is kind of a reaction to that and some of the stuff that is going on with Brazil’s interest rates as well. I still think there is a huge opportunity on this. I don’t know if we would flush to 30 on this or not. Will be watching for any sort of emotional drop that can produce that knee jerk reaction where it looks like the sellers have exhausted out and the longs have stepped back in. That way we can look to buy with set risk. I don’t think it would be surprising at all to see this give a 5-6pt bounce if it can exhaust to the downside. I know it’s a $2 ATR, but it had a 9pt day on friday.

Trade active:

started long $PAGS low 33s, 1/3rd size

Comment:

On a trade like this, normally I would take some off at 5m20. If this low of day is gonna be the bounce level off of this gigantic move down, I don't want to cut myself short on exits. my targets are the 1h20 and the 120m20. Only have 1/3R on, if we push I can add on dips to have a full 1R.

Trade closed: target reached:

Flat $PAGS here, in the $36.50s