Hi traders,
Let's have a look at some stocks. As boys, when growing up, it is a norm for us to play make believe war games. So this stock came into mind. Guess what :
Harmonic Patterns just appears before me like magic.
- A bullish Bat (in orange) that completed in Nov 2016
- Now a Bearish Butterfly (in green) completing soon
Raytheon is a major US defense contractor. They make weapons for the military. I am always an advocate for peace, not war :)
But now, I am focused on trading the market. I have spotted a Bearish Butterfly pattern on this stock, completing at around $156.50. I will look for price reaction at these levels.
Stops can be above $159.20 with targets at $145.10. Giving us a Risk:Reward of 1:4 trade
Do take note that price has been on a tear since the end of Jan 2017. So be cautious when shorting this stock. I want to see a reaction at the completion of the pattern before taking a trade.
Let's have a look at some stocks. As boys, when growing up, it is a norm for us to play make believe war games. So this stock came into mind. Guess what :
Harmonic Patterns just appears before me like magic.
- A bullish Bat (in orange) that completed in Nov 2016
- Now a Bearish Butterfly (in green) completing soon
Raytheon is a major US defense contractor. They make weapons for the military. I am always an advocate for peace, not war :)
But now, I am focused on trading the market. I have spotted a Bearish Butterfly pattern on this stock, completing at around $156.50. I will look for price reaction at these levels.
Stops can be above $159.20 with targets at $145.10. Giving us a Risk:Reward of 1:4 trade
Do take note that price has been on a tear since the end of Jan 2017. So be cautious when shorting this stock. I want to see a reaction at the completion of the pattern before taking a trade.
Comment:
Missed the 156.45/50 level to complete the pattern. Continue to monitor this