Reversion to the mean Position trade.
1. Bearish Harami and Tweezer Top.
2. Weak demand & Profit taking forming a weak higher high - One can argue a double top over last 6 weeks with two tweezer formations.
3. Long term resistance area.
4. Downward sloping 100 week moving average.
5. Bearish moving average crossover.
A stop above recent highs with a target of the 100 or 200 Week moving average confluence at the .382 fib level price range is a 1:+2 risk to reward with medium term high probability.
I'll be using a mental stop and an alert to notify me of a price break and a conservative position size to withstand volatility and re analyze conditions at a later date when more price data is available.
1. Bearish Harami and Tweezer Top.
2. Weak demand & Profit taking forming a weak higher high - One can argue a double top over last 6 weeks with two tweezer formations.
3. Long term resistance area.
4. Downward sloping 100 week moving average.
5. Bearish moving average crossover.
A stop above recent highs with a target of the 100 or 200 Week moving average confluence at the .382 fib level price range is a 1:+2 risk to reward with medium term high probability.
I'll be using a mental stop and an alert to notify me of a price break and a conservative position size to withstand volatility and re analyze conditions at a later date when more price data is available.