Short
Bearish Butterfly setting up on Raytheon (RTN)
Hi traders,
Let's have a look at some stocks. As boys, when growing up, it is a norm for us to play make believe war games. So this stock came into mind. Guess what :
Harmonic Patterns just appears before me like magic.
- A bullish Bat (in orange) that completed in Nov 2016
- Now a Bearish Butterfly (in green) completing soon
Raytheon is a major US defense contractor. They make weapons for the military. I am always an advocate for peace, not war :)
But now, I am focused on trading the market. I have spotted a Bearish Butterfly pattern on this stock, completing at around $156.50. I will look for price reaction at these levels.
Stops can be above $159.20 with targets at $145.10. Giving us a Risk:Reward of 1:4 trade
Do take note that price has been on a tear since the end of Jan 2017. So be cautious when shorting this stock. I want to see a reaction at the completion of the pattern before taking a trade.
Let's have a look at some stocks. As boys, when growing up, it is a norm for us to play make believe war games. So this stock came into mind. Guess what :
Harmonic Patterns just appears before me like magic.
- A bullish Bat (in orange) that completed in Nov 2016
- Now a Bearish Butterfly (in green) completing soon
Raytheon is a major US defense contractor. They make weapons for the military. I am always an advocate for peace, not war :)
But now, I am focused on trading the market. I have spotted a Bearish Butterfly pattern on this stock, completing at around $156.50. I will look for price reaction at these levels.
Stops can be above $159.20 with targets at $145.10. Giving us a Risk:Reward of 1:4 trade
Do take note that price has been on a tear since the end of Jan 2017. So be cautious when shorting this stock. I want to see a reaction at the completion of the pattern before taking a trade.
Note
Missed the 156.45/50 level to complete the pattern. Continue to monitor this
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.