This is interesting, Herbalife has always just seemed shady to me. This scandal wouldn't end the company, but could lead to some hefty fines and investor fear.
I'm using a 4-hour candlestick chart here. A bit more detailed than a daily chart.
This appears to be a classic Wm. O'Neill-style Cup & Handle under formation and it seems nearly complete to me.
If you think I've got this wrong, let me know! For that matter, let me know if you agree!
The equity trading system Equity Trend will open a long position in Herbalife (ticker: HLF) today at the market open - December 3
Stock:
- Long - Herbalife - Ticker: HLF
Each day, the system scans around 10,000 stocks to find just 1 or 2 which are ready to move immediately.
The system combines elements of breakout trading, trend following and risk management...
"Beautiful Pictures from the Gallery of Phinance", Robert R Prechter Jr.
Copyright 2003 Robert R Prechter Jr.
Pages 18 & 19
The drawings I've added to this chart are directly pulled from page 19 of the book mentioned. The original charts referenced are the DJIA from 8/24/1921 to 09/03/1929, and the second chart in the comparison is the DJIA from 12/06/1974 to...
I'll be honest - I've been wanting to find an excuse to short Herbalife for a while now. and the deceleration of highs is starting to suggest a stock about to take a breather from gains for a while - Don't think we'll see a collapse - but my money is on seeing $50 before we see $60
Play the gap
Look left!
8/18/2017, red doji/spinning top
Conviction:
Gap finally gonna retest!
Tweezer top daily 7/26-7/25... to the tee! ;) $53.52
(7/10 @12:30 on 4 hr... caution gap on the up side... so adjust stop as needed)
Price action ready to break the cloud... and you know what that means!
MACD showing negative/downtrend
Stoch downtrend toward...
HLF is potentially about to make the 9/20 EMA bearish cross on the daily if price continues down another day or so. It hasn't done this in over a month, where some serious bearish movement followed, and the past month of green has been a bounce from that last downward movement, which I believe is confirming a trend reversal now.
It's on it's second red day below...
Good chance to go short here. Unfortunately for the way it has moved the last few months it is difficult to measure the levels. Therefore I will have to move carefully.
What the information indicates is that it begins to reach an area of high resistance. This is an early call so for the moment I do not have clear targets, only the signal of the resistance area...
