$LAB just gave traders a reminder of how brutal parabolic markets can be. After an incredible run from the $5.75 low to nearly $24.40, momentum reached a climax and was followed by a violent liquidation cascade that wiped out a large portion of the move in only a few candles. The sharp rejection from the highs signals that late longs were heavily trapped, but what's catching my attention now is the market's ability to stabilize around the $13–14 region rather than continuing straight down.
Setup:
• Entry: $13.20 – $14.00
• Target 1: $16.50
• Target 2: $19.00
• Target 3: $22.00
• Stop-loss: $11.80
RSI(6) has cooled to around 40, a huge reset from the overheated conditions seen during the rally. The current structure looks more like a post-liquidation recovery attempt than a trend continuation breakdown. Bulls need to reclaim the $16–17 zone to confirm strength, while bears need a breakdown below $12 to regain control.
From a trader's perspective, the most important takeaway is that despite one of the nastiest flushes we've seen, LAB is still trading well above its origin move near $5.75. If buyers can continue absorbing supply around current levels, this could evolve into a high-volatility accumulation range before the market decides its next major direction. 📈🔥🚀
Trade #Labs here
