We would consider covering shorts in Synaptics (SYNA) because it has signs of downside exhaustion from the DeMARK Indicators® (i.e., oversold). We are also removing Crocs, Inc. (CROX) from our short ideas because it has violated our stop-loss.
In a search for new short opportunities with fresh downside catalysts, we found Cracker Barrel (CBRL):
CBRL broke down below its 50-day moving average decisively today, increasing risk of a bigger pullback in the short term. The breakdown is associated with a daily MACD “sell” signal, supporting downside follow-through.
CBRL has been range-bound for several months below long-term resistance from the weekly cloud model. An overbought downturn in the weekly stochastics, shown in the chart below, supports a bigger retracement with the range.
A short-term targeted level can be defined by support from the December 2022 low, near $94. To maintain an attractive risk-reward profile, we are using the 50-day (~10-week) moving average, near $112 as a stop-loss level.
Cracker Barrel (CBRL, $107.97)
Target: $94
Stop-Loss: $112