NUS daily - inside in big rising wedge - bearish
NUS daily - even though NUS is above BigRed (200 days MA) is close to a breakout of a big rising wenge which is a very bearish pattern.
Volume is neutral to bearish because this whole leg up is on volume below 20 days average volume.
At the moment NUS is above all major MA (8, 20, 50, and 200) which is bullish.
RSI is in the mid to oversold area which could indicate a possible drop in the near future also it has strong negative divergences meaning the price is moving up strong while relative strength is not, which is very bearish.
MACD histogram starts to tick down which is more bearish than bullish. MACD also has strong bearish divergences which are very bearish.
Overall: MUS is at the moment in the most bearish pattern - rising wenge. Breaking below the blue dotted line would open the possibility for a short position with a stop loss above the recent high. As MUS is bearish fundamental stock at the moment, I would trade it only to the downside.
Volume is neutral to bearish because this whole leg up is on volume below 20 days average volume.
At the moment NUS is above all major MA (8, 20, 50, and 200) which is bullish.
RSI is in the mid to oversold area which could indicate a possible drop in the near future also it has strong negative divergences meaning the price is moving up strong while relative strength is not, which is very bearish.
MACD histogram starts to tick down which is more bearish than bullish. MACD also has strong bearish divergences which are very bearish.
Overall: MUS is at the moment in the most bearish pattern - rising wenge. Breaking below the blue dotted line would open the possibility for a short position with a stop loss above the recent high. As MUS is bearish fundamental stock at the moment, I would trade it only to the downside.
Comment:
Short trade was triggered yesterday by crossing the dotted line. Stop loss is like I said, above yesterday's high.
Comment:
Sold half. We bounce from 50 days MA and as it looks now we create a Hammer reversal candlestick pattern.
Stop loss for the the second half is just above all those MA
Stop loss for the the second half is just above all those MA
Trade closed: stop reached:
The second half stopped at 42.07, just above BigRed.
Nice income trade, entry from 42.86 with first half exit at 40.62 (5.2%) and the second half at 42.07 (1.8%) so all together 3.5%.
Nice income trade, entry from 42.86 with first half exit at 40.62 (5.2%) and the second half at 42.07 (1.8%) so all together 3.5%.
Consistency is the key of success....