Short overbought Mercadolibre It has had a vert nice run up off its lows, and it's RSI has now reached 70, where every time before on the daily time frame this signaled a big trend change in direction to the downside. 70 being the oversold area supports the idea of shorting or put options. Along with the formation of the bearish continuation triangle being right at its double top form where it should be forming a top while at a high 70 rsi. If this is correct then starting a put position right about here can turn out to be very beneficial, with a far out as expiration as possible to counter short term volatility. You can always sell at any point in time when profitable opposed to waiting until expiration where time decay negatively effects your premium. I like this stock alot and if this it true I'd be very comfortable going long right after when it gets back on its Growth path. Nothing goes straight up or down, so trying to spot these trend changes can help with trading.
