blow-off top stage imo, potential hanging man candle stick pattern. rsi 80s.
can search for "parabolic stock" on google to see what might happen next.
consolidation would be the best thing for this thing to stay up.
I will wait to see see if NFLX reaches the 1.27 XA retracement of the butterfly
because it coincides with the all time high, possible double top. Best place to short.
I've only recently began to study harmonic patterns so please correct me if I am wrong here in the calculations.
PCLN looks like it formed a bearish butterfly with a 1.27 XA retracement.
I might try the 1480 / 1482.5 weekly call credit spread if I can get some premium.
short term bearish momentum trade as a short for following reasons.
1) Bearish candles, 3 days in a row hangin man followed by shooting start.
2) Unable to break the resistance line as drawn.
3) ovebought RSI signal
4) decreasing volume over last 3 days.
Trade nullified if with a daily close over resistance line
Spy has been trading in an upward moving channel for some time.
June 19th options maximum pain is 210. I am betting for SPY to stay inside the channel
for at least another week. Playing this with an iron condor
+206put -209put -213call +216call , my breakeven points are 208 and 214 .
2:1 risk to reward , but I will stop out if we close below 208 or 214....
