MELI Analysis showing possible drop.

1d Time-Frame Analysis

• Lets start with the bigger time-frame, with the bigger picture. MELI is at level 2 rise, meaning it's missing one more leg to the upside. Then, why short this? Just checked the cycles and I see that MELI does level 1 rise, retrace, level 2 rise, M formation, drop. So instead of level 3 being the peak formation before the reversal, level 2 is the peak of the cycle, and now we are in level 2 with an M formation!
  

4h Time-Frame Analysis

• 4h time-frame seems to be a copy paste of 1d time-frame. We can see the cycle to the downside, with only 2 levels and the second level being the peak formation, and now we can see two levels to the upside, with this level 2 being the possible peak formation.
  

Trade light

• Be careful guys, trade light. I'll set my SL at 1918.59, because if price touches that price level, the M formation will be possibly invalidated. Though, I'll wait for the close of the candle to be sure I'm not closing a stop-hunt rise. On the other hand from 1874.80 to our SL we have 2.34%, so playing big would mean a big loss. I will use a 2.5% of my entire account.
  

Take Profits

• Close 30% at 1742.83
  
• Close 35% at 1674
  
• Close 35% at 1583
  

Happy trading!

Comment:

If MELI 4h candle closes above 1894.57 I'm closing the trade.

Trade closed: stop reached:

Bad analysis. Had lots of confluences.