Trading with Confluence # 3 - A small case study on $CLOV I have no idea what's going to happen but I have a few things to share that I've found with $CLOV - the main idea is to find confluence factors. Let's see how many have we got. Will talk about $MVIS as well. Thread πŸ‘‡ On around April 16th, $CLOV rallied well but there was a very large short volume. That means plenty of people shorted the stock that day. Let's assume half of them didn't cover. Same thing happened with $MVIS. First time, both $MVIS and $CLOV couldn't take off. However, the second time, we all saw $MVIS go up about 50-70% because of all the short interest from the previous rally. Shorts were able to bring it down the first time but probably got destroyed the second time. Same thing can happen with $CLOV since we've already had 1 rally.
All of these factors make me believe that we can have a decent rally. There's always a catch though. What's that? Right now, we are at a strong resistance level which we rejected twice (blue circles) Unless we close above the level, there's no setup. Everything else looks good