🧠 Double Top in MELI – Potential Reversal Inside a Channel
Ticker: MercadoLibre, Inc. (MELI)
Timeframe: 1D (Daily Chart)
Pattern: Double Top
Bias: Bearish Reversal within a Bullish Channel
Technical Breakdown
We're spotting a clean Double Top at the upper boundary of a long-term ascending channel, a key zone where price has struggled multiple times in the past.
Here’s what stands out:
Two clear peaks around $2,700, signaling buyer exhaustion.
Price has now broken the minor support (neckline) around $2,350, which could trigger further downside in the short term.
The pattern is forming inside a well-defined upward channel, so this move could just be a healthy pullback within the larger trend, or the beginning of something deeper...
📐 Trade Setup
Entry: After the neckline break (~$2,350)
Stop Loss: Above recent highs, at 5% risk
Take Profit: Projected to 6.5% lower, toward the midline of the ascending channel and a high-volume node on the VPVR
📊 The Volume Profile (VPVR) supports this setup:
Lower liquidity between current price and the $2,200–2,250 zone may accelerate the move.
High-volume support is found at the TP zone, which makes it a smart target.
📘 Educational Insight
This setup is a great example of how classic chart patterns (like the Double Top) can still be relevant, even within strong uptrends.
A key lesson here:
Not every reversal is a trend change. Sometimes, it’s just a rotation to rebalance price within structure (like this channel). Risk management becomes crucial.
💬 What do you think? Is MELI heading for a deeper pullback or just catching its breath?
Hit the 🚀 if this helped clarify the setup, and follow for more clean, educational ideas!
Ticker: MercadoLibre, Inc. (MELI)
Timeframe: 1D (Daily Chart)
Pattern: Double Top
Bias: Bearish Reversal within a Bullish Channel
Technical Breakdown
We're spotting a clean Double Top at the upper boundary of a long-term ascending channel, a key zone where price has struggled multiple times in the past.
Here’s what stands out:
Two clear peaks around $2,700, signaling buyer exhaustion.
Price has now broken the minor support (neckline) around $2,350, which could trigger further downside in the short term.
The pattern is forming inside a well-defined upward channel, so this move could just be a healthy pullback within the larger trend, or the beginning of something deeper...
📐 Trade Setup
Entry: After the neckline break (~$2,350)
Stop Loss: Above recent highs, at 5% risk
Take Profit: Projected to 6.5% lower, toward the midline of the ascending channel and a high-volume node on the VPVR
📊 The Volume Profile (VPVR) supports this setup:
Lower liquidity between current price and the $2,200–2,250 zone may accelerate the move.
High-volume support is found at the TP zone, which makes it a smart target.
📘 Educational Insight
This setup is a great example of how classic chart patterns (like the Double Top) can still be relevant, even within strong uptrends.
A key lesson here:
Not every reversal is a trend change. Sometimes, it’s just a rotation to rebalance price within structure (like this channel). Risk management becomes crucial.
💬 What do you think? Is MELI heading for a deeper pullback or just catching its breath?
Hit the 🚀 if this helped clarify the setup, and follow for more clean, educational ideas!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.