MA has been a long-standing active short trade on the site for months now. it was first shorted at the top of the channel back on march 22nd at 418 and hit T1 (bottom of the channel) for a small gain on july 24th. MA then gave a false breakdown of the channel in early sept but like just about everything else, was ramped higher on the bernanke/draghi empty promise of QEternity. i believe that a more lasting & sizable move lower in MA is imminent at this point and although i’ve personally given this trade a lot of rope (room on my stops) and left it on as an active short, i am also re-adding it back here as a new short setup with a new set of price targets as shown on this daily chart.
note that there is a decent shelf of support just below the channel around the 445.80 area so one might consider shorting a 1/2 position on a breakdown of the channel, adding the other 1/2 once that support level goes. stops TBD once the short entry is triggered (a break below the channel). the weekly chart below shows just how overextended MA has become this time around as well as the clear historic pattern of sharp corrections following the breakdown of these ascending channels.
