Those Leggs Are Symmetrical!
The daily chart of Legg
Mason is setting up for a possible short swing trade. It fits all of my criteria:
1) The trend is down
2) The stock has pulled
back into a Fibonacci price resistance zone
3) The previous countertrend
rally was 16 days and 8.5 points. This countertrend rally, as of today’s close
(from low to high) is 16 days and 8.7 points. So it fits my definition for time
AND price similarity “symmetry”.
4) Three time cycles pointing
to a possible cycle high between now and August 19th (+/- 1 day).
Now, this has been a strong
rally so I’m looking for confirmation of a reversal before stepping into this
trade, but the ingredients are there for a reversal and continuation of the
bigger picture downtrend. On the flipside, if
(
LM |
Quote |
Chart |
News |
PowerRating) trades up through my price
resistance zone and makes new highs past my time cycles, there is a very high
likelihood we see a significantly higher rally. So, if I do get a trigger to
short my initial stop would be just above this Fibonacci price resistance zone.
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Good night!
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