XL - More Bearish Scenarios 🐻

Just a quickie as I've covered a lot on XL already, but just to update that i'm now looking at more bearish alternatives on quite number of stocks i'd like to buy some day.

So as you can see on the chart there are 3 banks of potential fib reversal points. We've already passed the first.

And you could argue that you can keep drawing fibs to infinity and although that is essentially correct I have noticed that long range fibs tend to either bounce at 1:0.618, 1:1 or 1:1.618. 1:2.618 is less common and 1:3.618+ virtually no existent without first a substantial bounce.

So anyhow I am more bearish than most but if you'd asked me a while ago if I thought XL would reach a long range 1:1.618 I would have said no, but with the trend accelerating from 22 Nov, I think that acceleration is a clue that the last leg from that point will be a 5 wave capitulation selling climax and a 5 wave fib is blue 2.618 which hits the long range 1.618 white.

So just as with TLRY and also in consideration of indexes potentially falling into a bear market, I think a devastating finale may be on the cards for XL as well as many other high beta stocks that I will cover.

So I will be watching the next fib area closely, but my gut is telling me this will go all the way.

And just like TLRY

See you at $0.5 💥.

Commentaire:

This chart is an excellent example of how the big players wipe the slate clean. If I was buying based solely on fundamentals I would of course be trapped now.