HIMS had been trending clean, stacking one consolidation on top of the next as it worked higher. We are looking to approach a very important level and today's pop back into that key level is giving what I think is a high quality short entry.

Here is the part that matters. The zone that broke sat right around the $31 area. That level was support on the way up. Once it broke, the polarity flipped, and broken support becomes resistance. Now price has bounced hard, up double digits on the session, and it is running right back into that same $31 shelf from below.

So this is not a random level. It is a spot the market has respected repeatedly, now being tested from the other side. Those retests into a freshly broken level are where trapped longs get their exit and fresh shorts get their entry, and it is exactly the location I want to be leaning against.

Where the confluence comes in 🎯

This is where it stops being just a chart for me. Separate from anything on the screen, I run my own options flow analysis using various metrics and stats from the data. The positioning I am reading on HIMS lines up almost perfectly with this short. When the options flow data and a clean technical level point the same direction independently, that is the confluence I wait for before I commit size. Right now they are pointing at the same thing.

How I am approaching it

I am looking to enter short at the open (4thAug), into the current levels around that $31-$32 shelf.

Invalidation is simple. If price reclaims the level and closes back inside the broken range, the retest failed and the thesis is wrong, so I am out. No arguing with it.

On the downside, the prior consolidation zones below are the natural draw. First target sits back near the recent range lows, with room toward the deeper support shelves if momentum carries. The measured move off the broken range projects into that same area, which keeps it clean.

Risk is defined, the level is obvious, and when the chart and my flow read are in complete agreement it is time to take the trade.

Not financial advice. This is my own read and my own plan, do your own work and manage your own risk. 🤝