This strategy is mainly based on technical arguments, indeed, the share has approached a technical resistance and could return to a bearish configuration.
Indicators highlighted an overbought situation in recent sessions. This indicator shows a limited potential for a possible recovery near the strong midterm resistance at USD 104.2. Moreover the stock has just touched this resistance some days ago and has immediately reacted on.
The technical configuration lead us to predict a consolidation phase, at least in the short term. The USD 104.2 should play its full role. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target USD 94. In case of further acceleration, the stop loss will be triggered above the USD 104.2.
Watsco, Inc. is engaged in the distribution of air conditioning, heating and refrigeration equipment and related parts and supplies (HVAC/R) with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean. The Company sells products to the commercial refrigeration market, which include condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. It also sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. It distributes products manufactured by Flexible Technologies, Inc. (Flexible Technologies), Resideo Technologies, Inc. (Resideo), Copeland Corporation, LLC, The Chemours Company (Chemours), Mueller Industries, Inc. (Mueller), and Welbilt, Inc. (Welbilt), among others. The Company operates in approximately 692 locations.
WATSCO, INC. 
