$JKS JinkoSolar Overextended - Bearish Options Activity

$JKS JinkoSolar Holding Co. - RSI and volume trending down after a huge parabolic runup recently. Expecting a near term retrace sub-$50.

Keep a close eye on the 20d ema line on the hourly chart. This has held up as support this entire run. A break below this line will confirm the downward move is underway.

Recent Bearish Options Activity:
15k $55.00 strike (OTM) 10/16 puts traded last Friday (7x OI) for $2.4M in premium.


Near term target: $44-$48 range

Commento:

Note: This is NOT investment advice.

Commento:

Update: 20d ema line on the hourly chart continued to hold up as support today. Watch for a break below in the coming days. Overall volume continues to decline.

Commento:

Update: 20d ema line on the hourly chart continues to hold up as support. Still watching for a break in the coming days.

Have yet to pull the trigger on a short position. If this opens green tomorrow, look for $92 level to be a possible top, based on fib levels.

Commento:

Update: Huge red candle today when it finally broke. Down almost 22% on the day. Topped out just over $90 in morning trading. Will be interesting to see where it goes from here. If we get additional selling tomorrow, look for ~$57.50 to be a possible support target - at the 20d ema line on the daily chart.

We stalked this short for over a week to get the best entry. Patience pays.

What goes up, must come down...always. On to the next one.