MELI Engulfing Green Bar Three Line Bearish886.75)
MELI is like a hydrid between Shopify and Amazon on the South American markets
Fundarmentally its revenue compared to market cap is more favorable than either of those.
On the weekly chart, MELI double topped to its historical high in February 2021 and September 2021.
It then descended to a pivot bottom in July 22
The chart now shows a large green engulfing candle taking out most or all of the previous
5-15 candles or a so called " Big Ass Candle". This could represent the end of a consolidation period
and the beginning of the resumption of down-trending price action. Last August a similar
engulfing green weekly candle preceded a downtrend.
I have plotted the long-term anchored VWAP and also the 6-month volume profile.
I will take a short swin trade if price drops below the POC line of the volume profile. ( 886.75)
If however, price approaches or crosses the VWAP ( 1060) I will take a long trade.
Given the stock price a 6 month expiration call or put option may be the best trade
method allowing for the taking of multiple contracts and then scaling out type trade
management stratery.
Fundarmentally its revenue compared to market cap is more favorable than either of those.
On the weekly chart, MELI double topped to its historical high in February 2021 and September 2021.
It then descended to a pivot bottom in July 22
The chart now shows a large green engulfing candle taking out most or all of the previous
5-15 candles or a so called " Big Ass Candle". This could represent the end of a consolidation period
and the beginning of the resumption of down-trending price action. Last August a similar
engulfing green weekly candle preceded a downtrend.
I have plotted the long-term anchored VWAP and also the 6-month volume profile.
I will take a short swin trade if price drops below the POC line of the volume profile. ( 886.75)
If however, price approaches or crosses the VWAP ( 1060) I will take a long trade.
Given the stock price a 6 month expiration call or put option may be the best trade
method allowing for the taking of multiple contracts and then scaling out type trade
management stratery.
Feragatname
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