PCLN has many of the features I look for in a reversal from an upward trending cycle that is ending. First the lateral movement that has created a clear resistance zone is very typical, we also have a break out on the close above that zone, which failed (at the white arrow). I'd prefer that the breakout had been bigger to attract more attention, but it's there, possibly we may get one more.
PCLN Here on the 30 min 3C chart we see several moves above resistance, all saw distribution.
On the 15 min chart, we see the same thing again, every move above resistance sees strong distribution.
On the 10 min chart we have several recent intraday attempts, both have seen negative divergences.
The same is evident on the 5 min chart.
I like this trade as a potential short right in this area, although I'd have a stop wide enough to handle any further potential false upside break outs.
No comments:
Post a Comment