PNFP Trade Idea Follow Up (short)

In yesterday morning's PNFP update I sad, "Keep PNFP on your radar, it's getting close."


I'm not fond of picking tops, but PNFP is showing some signs that it may be in a worthwhile position to go short as a high probability/low risk trade.

 Here's the major top on a daily chart. Remember the first break of a top is almost ALWAYS followed by a volatility move and I rarely like to short the first break of support for this reason, PNFP, if it failed here would be the second break of the top and much more inlne with my personal preferences. You can always wait for the break of support at the red trendline, but for those of you who like to get in a bit earlier and have the risk management to take trades like this, keep reading.

 Here's some intraday negative looking trade.

 The hourly chart is negative, you can easily see it without my arrows as PNFP is at a breakout level, but 3C is much lower.

 Here's the 15 min negative divergence.

 The 10 min.

And a very ugly 1 min.


I think PNFP can be shorted in the area or on a little strength if it materializes. My personal preference is to give initial positions some room on the stop and I'd choose the $16.45 area as an initial stop, this gives you less then 3% risk, which should be able to easily fill out a 15% of portfolio position without risking more then 2%. In fact it would allow you to invest nearly 70% of your portfolio in the trade, which you would never do hopefully. I don't like any more then 15% invested in any one idea. At that rate, your risk on the position is well below 1% portfolio risk.


The initial target is $12, but there's plenty more downside, I just see that as the first major stop based on support.