I am seeing this set-up as an EITHER WAY set-up. It's one of those rare, could be an easy long, but if wrong, easy reverser short trade. The overall trend I see in the Midcap index is for sure on the short side. That leads me to want to stay short. The set-up however looks to be one of a long biased one. If we can stay above the lower trendline from the recent lows, and put a stop in just below the most recent low...I think it's fairly safe and could be a nice ride up.
However...Since I see the overall trend as being down, I think a better play MAY be just waiting to see if we can break the lower trend line to take a short pos. in the direction of what I think is the overal trend.
2 comments:
So, you are saying we are either going up or down from here? I agree...
How about looking at some straddles to play this out.
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