1. Stock has been trading in a shot term uptrend within the highlighted channel 2. Stock has now hit a value zone, the upper edge of the channel 3. A bearish engulfing pattern has been form at this area. This candle's size is abt 1.3 x 1 ATR, giving it relevance 4. Note that a short position is a countertrade play, meaning the trade management must be very tight 5. Risk/Reward ratio is not ideal
II. Trade 1. Entry next candle 2. SL at 71. Prefer to give it some buffer and set the stop loss at 1 ATR above upper edge, but price hitting 71 would pretty much destroy the idea of this trade 3. Tp at next swing low. A conservative approach in taking profits here is advisable