mercado libre al borde de la cornisa visión diaria en mercado libre, de perder directriz habrá corrección y probará nuevo piso
MELI trade ideas
MELI - $1500 PRICE TARGET - LOOKING FOR $1075 TO $1175 PULLBACK0. Looking to add to our position on any pullbacks on this stock;
1. Currently running the top of the Channel at $1200+, and may consolidate here;
2. Looking for any pullback to the $1075 (Bottom) or $1175 (Middle) of the Channel for additional shares;
MELI and SE CorrelationMercadoLibre ( NASDAQ:MELI ) and Sea Limited ( NYSE:SE ) are two highly correlated stocks in the same sector (Internet entertainment/e-commerce).
Since SE had a 50% increase in the second half of 2018 (marking the beginning of the market-cap similarities), their correlation began, and SE's large moves (or lack thereof) are highly likely to be precursors to moves from MELI, making it a rare case of a leading indicator unlike most (i.e. RSI and MACD which are lagging indicators).
As these moves take time (usually about 3-6 weeks), these plays are for multi-week/month traders who seek consistent returns. I've annotated the correlation plays within the last two years which should serve as a framework for anyone seeking to take advantage of these opportunities in the future.
TL;DR: SE and MELI are highly correlated, and, as annotated in the analysis, SE is a leading indicator for MELI generally speaking. The areas of big moves by SE are usually precursors for big moves by MELI, and areas of consolidation by SE are usually indicators that MELI's big moves will reverse. Ideal time frame: 2-6 weeks per trade.
As always, do your own due-diligence, never risk too much per trade, have your own plans and targets, and be responsible.
Chart image without volume:
$MELI Hitting Resistance - Candle of Death$MELI Hitting Resistance - Candle of Death
Looking over-extended with the gravestone doji on 4 hr chart - finding resistance at the 1.618 fib level. High risk short play.
Short term target - $880.00
If 20d ema line is broken we could see $800 near term.
Note: Education analysis, not investment advice.
