Asset: Civitas Resources (CIVI)
Timeframe: 30-Min Chart
Setup Type: Bearish Breakdown Trade
Trade Plan (Short Position)
Entry Zone: Below $32.99 (Breakdown Confirmation)
Stop-Loss (SL): Above $35.02 (Invalidation Level)
Take Profit Targets:
TP1: $30.82 (First Support Level)
TP2: $28.11 (Extended Bearish Move)
Risk-Reward Ratio Calculation
Risk (SL Distance): $35.02 – $32.99 = $2.03 per unit
Reward to TP1: $32.99 – $30.82 = $2.17 (1:1.06 R/R)
Reward to TP2: $32.99 – $28.11 = $4.88 (1:2.40 R/R)
Favorable Risk-Reward Setup – Targeting a 1:2.40 R/R at TP2.
Technical Analysis & Strategy
Bearish Symmetrical Triangle Breakdown – Price broke below the trendline, indicating further downside potential.
Weak Buying Pressure – Struggling to hold above $32.99, signaling seller dominance.
Volume Confirmation Needed – A strong sell volume spike below $32.99 confirms momentum shift.
Momentum Shift Expected – Breakdown could lead to $30.82, then extend to $28.11.
Key Resistance & Support Levels
$35.02 – Stop-Loss / Resistance Level
🟡 $32.99 – Breakdown Level / Short Entry
$30.82 – First Target / TP1
🟢 $28.11 – Final Target / TP2
Trade Execution & Risk Management
Volume Confirmation – Ensure strong selling pressure before entry.
Trailing Stop Strategy – Move SL to breakeven ($32.99) after hitting TP1 ($30.82).
Partial Profit Booking Strategy:
Take 50% profits at $30.82, let the rest run to $28.11.
Adjust SL to breakeven ($32.99) after TP1 is hit.
️ Fake Breakdown Risk
If price moves back above $32.99, exit early to limit losses.
Wait for a strong bearish candle close below $32.99 before an aggressive entry.
Final Thoughts
Bearish Setup Confirmed – Breakdown signals further downside potential.
Momentum Shift Expected – Watch for volume confirmation.
Favorable Risk-Reward Ratio – 1:2.40 R/R at TP2 makes this a high-quality trade.
Stick to the plan, manage risk, and trade smart!
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