BA
SHowing on the weekly defined diamond pattern, I believe most likely a diamond top. See link for example.
static-news.moneycon.../Pattern-285x258.png General rule for trading diamonds are the first target on breakout is equal to the size of the diamond. My first target for BA breakout down from this diamond would be around 247 area, but could go lower for uptrend support line touch. Here's the issues with trading this. This pattern could theoretically extend out for a while yet to come. So, to minimize risk the safe play is to wait for break below trend line/bottom diamond line to short. There is another, riskier play. Of course with more risk also generally comes more reward, so balance that according to your trading style. Option 2 would be to short now, since the last weekly candle touched then pulled back from a short term resistance trend line. If it were to be rejected and head down to bottom of diamond, that's a handsome reward without even breaking the formation. Nevermind how much dough it would be if it actually went ahead and broke out. If you decide to play this choice, be sure to set a stop loss just above the short term resistance trend line, so around 370. This represents a 5:1 ratio in favor of reward just to bottom of diamond. Total RRR to first target from close is around 15:1. Hit a nice gain last week off that Monday premarket drop, but will likely wait for breakout of formation to short here. Happy hunting and GLTA!!
