Short squeeze, page-112

Hey Theron,

I usually don't get interested in looking for an entry point until short term moving averages catch up with the share price. $34 may prove to be a great entry but the risk of further falls at the moment will keep me on the sidelines. I have seen many of these big falls play out and they usually have at least another 5-10% drop in them. The bands are still wide apart so it's unlikely to make any sustained sharp moves up in the near term. If there was another big move it's more likely to be down IMO.

The next obvious support level is around the $32 mark and 36.30 would be a reachable level to the upside.

There is nothing in the chart at the moment that makes me believe FLT will see the $40 level again anytime soon so the risk and reward are the same for me, and that's not a trade I am willing to take.

I don't know if this what you were looking for and I apologise if it sounds gloomy but the trouble I have making a call is there is no clear signal for the next move so I will always lean with momentum which in this case is down.

Obviously this is not a recommendation to buy, hold or sell, it's just how I would trade it. To me the sell was early June when it broke it's trend and support lines. A good reason to have an exit point you are comfortable with is to avoid situations like this. I also know nothing about the company but they do have some great pics on instagram.