Short Term Outlook -
lower channel line in green, based on .
Reason for Short trade now:
1. Rally up to upper line (red)
2. "Pop and Drop" price action pattern (my definition, lower low immediately followed by a one leg higher high)
3. 2 leg pullback off lower low (AKA second entry)
4. Higher high on (net OBV is -4 million shares between last swing high and current swing high), indicating more selling than buying during this rally.
5. Resistance seen above current rally, showing confluence of resistance with the upper red channel line
6. pattern after 3 prior tests, meaning that there are probably a lot of stops just below this level, so if price can breakdown through this level, then it will probably be a strong and quick move.
7. No follow through on last 2 white bars ( reduced and inside bars)
Entry - break of swing low
Initial stop - above swing high
1st target - measured move ( ) down to $194.86
Runner - down to green line, around $191
Note: if there is significant demand approaching the lower blue , then tighten stop. But if able to break this level (ICE - Wyckoff), then further weakness should continue down to the bottom of the red channel, probably all the way down to the bottom of the green line, around $191 level.