Asset: Ibotta, Inc. (IBTA)
Timeframe: 30-Min Chart
Setup Type: Bearish Breakdown Trade
Trade Plan (Short Position)
Entry Zone: Below $39.00 (Breakdown Confirmation)
Stop-Loss (SL): Above $40.51 (Invalidation Level)
Take Profit Targets:
TP1: $37.46 (First Support Level)
TP2: $34.90 (Extended Bearish Move)
Risk-Reward Ratio Calculation
Risk (SL Distance): $40.51 – $39.00 = $1.51 per unit
Reward to TP1: $39.00 – $37.46 = $1.54 (1:1.02 R/R)
Reward to TP2: $39.00 – $34.90 = $4.10 (1:2.71 R/R)
Favorable Risk-Reward Setup – Targeting a 1:2.71 R/R at TP2.
Technical Analysis & Strategy
Bearish Rising Wedge Breakdown – Price broke below ascending support, indicating weakness.
Weak Buying Pressure – Price struggling to hold above $39.00, showing seller dominance.
Volume Confirmation Needed – A strong sell volume spike below $39.00 confirms momentum shift.
Momentum Shift Expected – Breakdown could lead to $37.46, then extend to $34.90.
Key Resistance & Support Levels
$40.51 – Stop-Loss / Resistance Level
🟡 $39.00 – Breakdown Level / Short Entry
$37.46 – First Target / TP1
🟢 $34.90 – Final Target / TP2
Trade Execution & Risk Management
Volume Confirmation – Ensure strong selling pressure before entry.
Trailing Stop Strategy – Move SL to breakeven ($39.00) after hitting TP1 ($37.46).
Partial Profit Booking Strategy:
Take 50% profits at $37.46, let the rest run to $34.90.
Adjust SL to breakeven ($39.00) after TP1 is hit.
️ Fake Breakdown Risk
If price moves back above $39.00, exit early to limit losses.
Wait for a strong bearish candle close below $39.00 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 – 1:2.71 R/R at TP2 makes this a high-quality trade.
Stick to the plan, manage risk, and trade smart!
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