🧠 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!
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.