MRO - Keep Your Short On 🩳

2022年1月27日

MRO appears to be completing a supercycle X wave.

From 2014 top MRO completed a 1:1 cycle ABC down to 2020 crash low, of which the B wave pierced a fakeout through the 200DMA before returning to the bear market.

And now MRO appears to be completing this X wave formed via a 1.618 primary ABC extension which is has risen all the way up to the previous cycle B wave territory - which is common for X waves as they are of higher degree and so have a larger retracement.

The 1.618 sits in the common reversal area of 0.618 - 0.75. I wouldn't be surprised if it hits the 200 Month MA again however I'm not confident of this as it would mean MRO will be at the common reversal limit around 0.76. It may happen, but I'm not fussed about $1 really as this is a long term trade.

Also worth noting the monthly RSI is exactly where it was at the 2014 top.

I'm expecting a devastating capitulation that through some sort of cycle ABC will take MRO to new lows perhaps around $1 and if duration is equidistant that will occur in 2027.

Not advice.

2022年2月12日

註釋

As suggested MRO has hit the 200Mma and RSI hasn't been higher since 2007. Will be adding to position next week.

2022年2月15日

註釋

5% gap down today - could be the start of something.

2022年2月18日

註釋

For anyone that might be foolish enough to use a chart to make a bearish trade - this long wicked hanging man on the weekly is likely a significant high time frame candle revealing probable incoming distribution 😄.