MRX Follow Up

I posted MRX as a short idea Friday and posted a follow up yesterday.

 Overall on the daly hart, the two red arrows contribute to the downtrend, the other candles are noise. I said it's best if the break away gap from last Thursday is left unfilled. I view the red region as the most likely upside target, therefore MRX could be shorted here with a stop in the red rectangle area, you could also phase n to the trade and add on further strength, but I do think there will be some more upside before a reversal.

 Here's the daily chart showing a previous bull cycle (a cycle consists of 1. accumulation/base 2. mark up and 3C confirmation 3. distribution and a top and 4. decline.) You can see the full cycle in 2010, we are currently at stage 3 of the cycle, distribution/top and decline will follow next.

 Here's the 60 min chart showing the top/reversal, note a positive divergence suggesting a bounce.

 The 5 min chart was under accumulation yesterday and is showing strong leading positive divergences today, I suspect the lateral range s under accumulation now.

The 1 min chart makes this even more clear. These two charts taken with what appears (thus far) to be a Harami (upside) reversal on the daily chart, all suggest to me some more upside, but I don't see enough strength right now to fill the gap, so f you wanted to initiate  short or partial short position now, I would use the first chart's resistance area as my risk on the trade so I could decide on the size of my position.

Or you can show some patience and wait for a bounce higher to initiate the short. I often like to have some short exposure in case there's a surprise event that knocks the market down, but I go into these trades understanding the probability of more upside and I plan for t accordingly BEFORE I enter the trade.