Double Top in MELI – Potential Reversal Inside a Channel

17 ก.ค.

🧠 Double Top in MELI – Potential Reversal Inside a Channel

Ticker: MercadoLibre, Inc. (MELI)
Timeframe: 1D (Daily Chart)
Pattern: Double Top
Bias: Bearish Reversal within a Bullish Channel


Technical Breakdown

We're spotting a clean Double Top at the upper boundary of a long-term ascending channel, a key zone where price has struggled multiple times in the past.

Here’s what stands out:
Two clear peaks around $2,700, signaling buyer exhaustion.

Price has now broken the minor support (neckline) around $2,350, which could trigger further downside in the short term.

The pattern is forming inside a well-defined upward channel, so this move could just be a healthy pullback within the larger trend, or the beginning of something deeper...


📐 Trade Setup

Entry: After the neckline break (~$2,350)

Stop Loss: Above recent highs, at 5% risk

Take Profit: Projected to 6.5% lower, toward the midline of the ascending channel and a high-volume node on the VPVR


📊 The Volume Profile (VPVR) supports this setup:

Lower liquidity between current price and the $2,200–2,250 zone may accelerate the move.

High-volume support is found at the TP zone, which makes it a smart target.


📘 Educational Insight

This setup is a great example of how classic chart patterns (like the Double Top) can still be relevant, even within strong uptrends.

A key lesson here:

Not every reversal is a trend change. Sometimes, it’s just a rotation to rebalance price within structure (like this channel). Risk management becomes crucial.


💬 What do you think? Is MELI heading for a deeper pullback or just catching its breath?

Hit the 🚀 if this helped clarify the setup, and follow for more clean, educational ideas!

17 ก.ย.

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