To The Moon

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Today’s newsletter will cover the following stocks:

MercadoLibre, Inc. (NASDAQ: MELI)

MELI is trading in 2 ascending channels, namely a larger ascending channel (in dark green) since its IPO in 2007 and a tighter ascending channel (in blue) that's been in play since 2008.

MELI’s monthly RSI is forming a bearish divergence, while the monthly SKDJ is showing signs of rolling over. It needs to hold prior highs at 2,020 for it to march towards the 1.618 Fib extension at 3,216.33 (assuming 0 Fib = 84.19 and 1 Fib = 2,020).

Otherwise, it could roll back into the 1,564.21 monthly bullish imbalance support (and lower). In all likelihood, MELI could push back into 460 quarterly bullish imbalance in the long term if it were to break down from its existing trend.

If the blue ascending channel breaks down, manage your risk. Don’t force a long when support breaks.

Hims & Hers Health, Inc. (NYSE: HIMS)

HIMS’ monthly chart formed a bearish crossover on the SKDJ indicator, with the last crossover resulting in a pullback into support.

Here, we can see an ascending broadening wedge pattern with the stock closing the weekly bullish imbalance sitting between 32.07-34.88 while hitting wedge support. If there’s any place HIMS must hold for further upside, it is here.

If HIMS loses 32.07, it is heading down into the 23-24 area to fill the monthly bullish imbalance. Otherwise, it could start a fresh leg up to the 1.618 Fib extension at 48.34 (and beyond). I assumed that the 0 Fib is at 13.47 and the 1 Fib is at 35.02.

Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX)

RXRX’s monthly chart is clear - hold 5.92 and it has a good chance of retracing back into the weekly bearish imbalance between 7.89-9.15. If the stock loses the green support trendline, then longs are simply not viable.

Summary

In bull markets, support trendlines usually hold. In a choppy market… hard to tell. Be prepared for support trendlines to break, as that usually signals trouble ahead.

$Recursion Pharmaceuticals, Inc.(RXRX)$ $Hims & Hers Health Inc.(HIMS)$ $MercadoLibre(MELI)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$