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ROLLS ROYCE - WYCKOFF THAT MIMICS THE 2018 BTC RALLYThis post is to demonstrate a variety of trading techniques and relationships amongst similar patterns. Although this is focused on RYCEY, I provide reference to RTX as a representation of airline engine manufacturing and reference the 2018 BTC consolidation. Lately I've been studying the Wyckoff Distribution and found eerie similarities that are worth sharing. 2018 BTC Comparison of Wyckoff Distribution Take a look at the 2018 BTC consolidation. We have clean Wyckoff distribution with the absence of the Spring since there was a lot of buying pressure to turn the market around. Now check the recent RYCEY consolidation. Here is the ideal Wyckoff distribution image.binance.vision Moving Average Strategy Although we typically look for a Spring inflexion point to mark the end of accumulation, sometimes it just isn't there. The similarity between the daily 50ema and 100ema is what leads me to be inclined to bet that we won't have a Spring this time. Notice how we are pinched right between them and they are near crossing? Eliot Wave Interpretation Almost everyone watching RYCEY is aware of the 94% discount off ATH's and we are no where near pre-pandemic levels. In this chart, I've combined Eliot Wave principles to show completion of the ABC correction with subdivision of wave C - we have wave 1-2 extension landing right at the 2.272 which is what we look for for wave 5 completions. Wyckoff Interpretation In addition, the Wyckoff interpretation demands that you pay attention to volume! Look at this huge uptick in volume from the end of last year when the dividend was cut, and it still remains relatively high to this day. These are never before seen levels of volume with relatively no price movement since the big drop down into the $1 range. All of this hints that Rolls Royce is ready for a huge turnaround. My first target is $3. Using Competitors as a Proxy As initially mentioned, we are still looking to finish wave 3 for RTX which I am using as a proxy for RYCEY and the larger airline industry. Another leg up could correspond with a breakout of RYCEY and consolidation above the breakout zone as RTX pulls back for a wave 4. You can find that idea posted below in the related ideas. Link to RTX Post More info on Wyckoff distributions Other examples of Wyckoff Distribution Thanks for reading!!
OTC:RYCEYLong
by warrenbudget
6
Long Term Bear, do not hold 3x futures based productsI enjoy trading DRIP and I believe long term, oil is worth less than today. ESG is a movement that will continue, especially when it comes to China and India's eventual and inevitable higher participating in the space. Day trade DRIP, but do not hold. The issue arises from the cost to roll the futures and the cost to leverage the future or ETF into a swap that returns the 3x. The cost is high, the slippage is insurmountable, and the product will deteriorate even if you chose the correct trade. Examples of this are everywhere. Trade events and noise, it is a risk / reward play. Saudi oil field was the last great play for this product, any large move up in CL1 would be a short term long DRIP. If you chose to trade the technicals, do not use the ETF, but CL1. This includes USO, this will also deteriorate away from CL1. **no position, but always waiting **happy to share further details on this topic and how these products function
AMEX:DRIP
by RCB1229