MNDY Bull Flag

17 Agu

MNDY has consolidated for 4 days post-earnings. Three bearish candles were observed, followed by a bullish candle closing above the previous two days. This is a bullish signal. The key level of $261 has been surpassed - this is the level of the Volume Point of Control (VPOC) across the three bearish days where sellers were present. Price is also holding a significant level at $255.50, which was the resistance dating back to the COVID bubble collapse. Price tested this level on Friday, and buyers instantly stepped up. This is demonstrated by the first 65-minute candle that had increased Average True Range (ATR), clearly showing buyer interest.

The setup for this name is straightforward: an Anchored VWAP (AVWAP) trade. Price has tested the AVWAP to earnings release, as well as the key level. Price offers a slim spread. The entry point is a break of the High of Day (HOD) at $263.79, with a stop loss at the Low of Day (LOD) at $253.51, below the AVWAP.

Trade targets are based on fair gaps and liquidity levels:

First target: $300 (round number), a 3.5R target
Second target: $313, a 4.85R target

Remember to monitor stop loss orders and manage risk accordingly.