WHY
1. USB traced well pronounced head and shoulders pattern on D and W.
2. Other industry (finance) stocks such as GS, WFS also posted a reversal on W and M.
3. SPX500 seems to be looking south on W
TRADE DURATION and PROFIT TARGET
USB and market in general might be starting long bearish trend however here we target the distance to
- approximately equal to the height of the H&S structure
- 200MA on W basis (highest timeframe where pattern is visible)
- support determined by previous highs
HOW
1. Short stocks with risk reward 4.0
2. Avoid options as it can be a long story
ENTRY
Trade will be entered 4H (lower timeframe) with SL
Waiting for at least 0.5 Fibo retracement for better RtW ratio
Trade active:
I guess these divergences mean lower lows ahead
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⏱️ Timely updates of WTI, Gasoil, NatGas charts explaining every twist
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🌏 energeiacharta.com
⏱️ Timely updates of WTI, Gasoil, NatGas charts explaining every twist
🗃️ Extensive analysis archives
📏 Chartopedia, with examples of applying ElliottWave to real world charts