- divergence between the price and the (yellow dotted line): the price continues to rise but the trend of purchase begins to decrease. This is a symptom of the weakening of the trend.
- 100 $ is an important psychological threshold, we expect several profit taking
- Japanese candles highlight 3 in the last 3 days, a precursor of a trend reversal.
- the volumes of buying are decreasing.
From the point of view of we believe that herbalife -0.44% is just a bomb about to explode. In addition to being based on a pyramid scheme, it offers an out-of-fashion product with several more fierce competitors. This short position could really end with a profit of 70/80%.
The first strong sell signal could be a daily candle wich close below the body of the last 3/5 candles. The first target is certainly the threshold of 80 dollars. Broken this level there is a good chance of seeing the burst of this bubble.
We want to specify that our short operation was opened on March 13th when the price of Herbalife was $ 99.55.