Ticker: AOSL (NASDAQ)
Setup: Bear Flag Breakdown + Retest Rejection
Breakdown Zone: ~$20.17 (yellow zone retest failure)
Trade Plan (Short Position)
Entry Zone: $20.10–$20.25
Stop Loss (SL): Above $22.70 (white resistance)
Take Profit Targets:
TP1: $17.25 (red zone – prior support)
TP2: $14.15 (green zone – major demand)
Risk-Reward Breakdown
Risk:
$22.70 – $20.17 = $2.53
Reward to TP1:
$20.17 – $17.25 = $2.92 → R/R ~1.15:1
Reward to TP2:
$20.17 – $14.15 = $6.02 → R/R ~2.38:1
Technical Highlights
Breakdown from falling wedge with retest
Rejection off yellow zone = bearish confirmation
Consistent lower highs, weak bounce = more downside
Heavy volume on breakdown candle adds strength
️ Trade Management
After TP1:
– Adjust SL to breakeven
– Secure partial profits
Ride remaining position toward TP2 with trailing SL
️ Invalidation Triggers
Break above $22.70 resistance
Strong bullish engulfing candle with volume
Price reclaiming wedge + consolidation above trendline