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Tr8dingN3rd
6 sept. 2023 09:29

MNST - Monster with a monstrous drop? Short

Monster Beverage CorporationNASDAQ

Description

Nah, not monstrous, but a drop maybe.

What do we have in this chart?

The up-sloping Fork projects the most probable path that price takes. So, it's up, until price is falling out of the Pitchfork.

Next, the A/R or Action/Reaction lines (slight blue).
All they do is measure a pullback action and project the corresponding reaction.

As we see, the A/R line above the last high is not touching price, but it gives kind of a resistance to price.

Then we have price itself: A huge bunching is happening up there. And, price crossed below the Center-line a couple weeks ago and is currently trading below it, with support of the EMA(30).

So we land at the Indicators and Oscillators:
The MACD crossed negative weeks ago. And this time the negative indication is longer than the last two times.

The Mansfield Indicator shows weakness compared to the S&P500, and the RSI has taken a dive weeks ago.

All this leads me to believe that we see bigger correction in MNST. Maybe not a monstrous one, but a correction down to the L-MLH.

Play it save if and don't let greed eat your brain §8-)

Trade fermée: cible de profit atteinte

Closing the trade today.
Commentaires
anthonycmm
most likely scenario, especially considering that the bearish monthly candle will soon take control next week. Lol.
AMIT-RAJAN
What an idea! Great i strongly agree with this chart and your analysis. Thanks for sharing
Tr8dingN3rd
Thanks @AMIT-RAJAN, hopefully it pays out for all ;-)
Have a happy day.
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