Setup: Post-earnings momentum + support break
KRMN reported earnings after-hours with strong results and raised forward guidance. The company now expects 2026 revenue between $715M–$730M, up from prior guidance of $700M–$715M. On the surface, there was nothing bearish about the report.
But this wasn’t a fundamentals trade — this was a technical setup.
Over the past month, KRMN had a strong run from roughly $72.50 to $107.50. After that move, price began to consolidate in a defined range, holding support around $95–97 and resistance near $105–107.
That range is what mattered.
What happened
After earnings, there was no major reaction in after-hours, which often sets up a cleaner move during regular trading hours.
At the open:
- Price failed to reclaim the EMA
- Rolled over and took out the premarket low
- Then broke below the $95 support level
That level had held for over a week. Once it broke, the structure shifted.
This is exactly what you want to see:
Break of support → shift in control → high probability of continuation
The trade
- Entered short on the confirmed breakdown
- Position size: $1,000 (kept risk controlled)
- Let the trade work without interference
As the move developed:
- At around +2–3%, I moved my stop to breakeven
- Continued holding through the day as price trended lower
- Around 1PM, I tightened my stop further to lock in gains
- Got stopped out shortly after
Result: +2.8%
Why this was a strong trade
This wasn’t about the size of the win — it was about execution.
- Traded only during regular trading hours (RTH)
- Waited for a clear break of structure
- Entered with proper position sizing
- Didn’t overthink or interfere mid-trade
- Actively managed risk by moving stops
Most importantly:
I let the setup confirm before acting — no anticipation, just reaction.
Final takeaway:
Small gain, but this is exactly what consistent, high-quality execution looks like.
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