Shorting Opportunity on N78 + Darvas on confirmed Double top

I was just looking for a possible play today with stockfetcher using my filter "New 78 - Darvas Day High"

Sometimes, it takes a while for a certain stock to be able to propel again after hitting a double top, although it had been confirmed on a previous move to have a solid N78 with Darvas box strength rise. When this occasion arises you have a short period of shorting opportunity. This is the case of the following:

VNRX - Volition RX Ltd.

http://charts.stockfetcher.com/sfchart/AlW62hWlzj.png
In a 2 years span the stock seemed to have a pretty good move upward. In fact it is actually respecting the 200EMA (200 days exponential moving average) starting from January of 2019, using it as its support all the way up. And as you can see too the stock price kept bouncing on a high (red line upward) and low channel (blue line upward) going upward.

http://charts.stockfetcher.com/sfchart/w0CqfSnJ8f.png
Sep. 24, 2019 it hits New 78 Day
Sep. 25, 2019 it hits New 78 Day High + Darvas
Sep. 26, 2019 to Oct. 3, 2019 in 6 days the entire gain of Sep. 25, 2019
                       was wiped out with low volume.

http://charts.stockfetcher.com/sfchart/o9BnPOwaj8.png
Sep. 25-27, 2019 Marked the shooting star formation
Oct. 21, 2019 18 days after the Darvas formation it tried to breakout of 6.20 but couldn't
                       It got hammered on Oct. 22, 2019 and closing around $5.65 below the close of $5.77
Oct. 28, 2019 Double top is confirmed. It just couldn't get through the $6.00 mark.

http://charts.stockfetcher.com/sfchart/bG7rZkz9Qy.png
The top of Sep. 25, 2019 and the tops of Oct. 21 and Oct. 28, 2019 created a major resistance (see light red rectangle) . This somewhat like a $0.50 cents resistance bold line (Between $6.50 and $6.00). This kind of confirmation would tell you that it will take a while before the stock can propel back to break out this resistance. It has to swing low first and create a momentum.

The close of Oct. 28, 2019 is a trigger point for shorting. If you position a short on this level you can be rewarded slowly but surely.


If we short on such level, where could be our cover position? Now we have to retrace our volumes.
http://charts.stockfetcher.com/sfchart/SupDyNd9x4.png
The major highest volume was on Sep. 24, 2019 when it made a New 78 Day High (see volume with yellow circle dated 2019/09/24). Before this volume the highest prior volume next to it looking through the left side by projecting a horizontal line against the body of this breakout volume would be the prior volume in Sep. 17, 2019 (See volume circled with yellow and dated 2019/09/17). If you trace the candle of that prior volume, the low of the candle was around $3.90. Your cover would be around $3.95 then, 5 cents higher than this low. This is also your reversal positioning for a buy order.

http://charts.stockfetcher.com/sfchart/8iJG3xkUrw.png
The cover of the short position is hit on Dec. 5, 2019 which is triggered the buy position. At this scenario the price drop is being supported now by the 200EMA.

http://charts.stockfetcher.com/sfchart/X7lJryJga8.png
Looking at the 2year chart the higher lows of the candles from Dec. 5 - 19 of 2019 where all ascending following the 200EMA. Also the candle on Dec. 5, 2019 had a longer tail which means that there is now a bit of a stronger push upward. The ascending higher low prices are now well aligned on the ascending lower blue channel, which gives you confirmation of possible reversal from its pullback.