MCO trade ideas
$MCO - Ahhhhhhhhhhh Not an interesting chart to begin with - really. If it weren't for the 2 hour, I (probably) would've skipped over it. But SUUPAAAA ready to jump on this come Monday. But check me out - I H.A.T.E & always 150% regret catching a knife that starts with a fat ass black candle & then just trades flat - probably the worst, most painful trade to sit & watch either do nothing or just keep (slowly but surely) falling even more ($CMD, $NOAH, $FSLR, etc.,). Because think about the whole "Every gap gets filled" theory - moving averages count each candle & during a gap (up/down) obviously once the # of candles counted to calculate the moving average comes to the candle after the gap - the moving average automatically makes a huge re-calculation in slope (upwards/downwards). Otherwise, if it's a number of candles that make huge moves (up/down) - there's not much to correct, everything is priced in with regards to strength of the trend. But few things to point out - red line was what I originally marked on 2 hour chart for first little bump up using a bar counting method in reference to the white curve (when lows stop making new lows, & curves up). RSI (black) & MFI (white) - it's not oversold if RSI says it is - hence why I use both. Since MFI takes the % change in each candle, if price moves faster in either direction while RSI shows divergence - you can obviously expect (some type of) a reversal only when RSI crosses above / below MFI. 3rd thing to point out - 45 EMA as a volatility type of measure. I won't get into the different pattern reactions there are but, off rip - this setup reminded me of $BIDU a while back. Not because of that personal volatility theory but the potential for a huge comeback within such a short amount of time after (mostly flat) trading. The target price I shot for wasn't glorious because I only saw it after the start of a breakout - but I'll leave an old post from $BABA so you can get an idea how price reacts during times 45 EMA is about to get close to / flatten against / cross below/above another moving average. Overall target price - $184 to be safe (gap fill is N.O.T guaranteed), $185 to 500% take profit & enter (small) short position.
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The Great Long Play, Buffet Call & Master of StabilityI always wondered why anyone would invest in Moodys. Well, looking at its trend lines, its consistent ranges, stability and growth with the prevailing market sentiment, it seems like an almost no-brainer as to why you'd start and hold a position in it. While it's hard to want or even give a PT for the stock, it has weathered this year well and should return to $170 levels without problem. In a year where people want to avoid stability and find good hiding places, MCO might just be that. I'd personally ride this one out to $175-180 before taking gains and watching for a new range, ala 2016, to trade within depending on how this year unfolds into 2019.
Short sell signalFollow the comments on the chart! If the price goes up to the size of the stop loss point, put the stop loss on the entry point, Stop loss means that the closing price must be below the Stop line, the shadows are not acceptable. NYSE:MCO SP:SPX
