The “to fade” play in Osiris Therapeutics – an update

One of my strategies involves the preparation and execution on stocks that get extended. This can be for any number of reasons, but I build a “to fade” list of stocks each week with the intent of finding a viable short entry (either shorting the stock or putting on a Bear Risk Reversal).

Sometimes a trade from this list can take several weeks to develop, and other times it happens rather quickly (like with a Blowoff Top move).

I have such a trade on with $OSIR and thought I would do an update now that it appears to be trying to finding some footing just above the $8 level. Here is my initial entry posting from late June:

You can view the chart above here for a closer look. Here is a current Daily chart showing a flagging/consolidation/bottom process forming:

I currently have a stop on the short position set to $8.75 so for now it looks ok. There is not a lot of volume at this price level (note the Volume at Price bar to the left).

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