FI recently closed its weekly candle with a bearish engulfing candle. The past two times PA acted similarly, it marked a significant top (circled). I wonder if this time will be any different? Also of interest is the bearish MACD cross that accompanied each of these recent tops (yellow arrows).
The 15-day candle will close tomorrow, and as long as it closes under the body of the previous candle, it will confirm the bearish harami combo, setting a short term top.
Current PA doesn’t offer a low risk entry atm, but if PA does reach this highlighted area of interest (above chart), it could provide a trigger to go short via spot.
2-Month candle closes in three days, and it has a chance to bearishly engulf the body of the previous hanging man candle – if this does occur, by closing under $121.66, then a mid-term top will be in place.
Loose timing for the bottom of the potential (A) wave is summer of 2024.
One could look at puts as a way to participate in this potential set up. IMO, 21 June 24 strike of 105 could offer a decent play.
If PA offers a trigger to go short, then it will be identified in the Discord with a write-up to follow.
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