MA is setting up to offer a very nice R/R short on a break below this very extended ascending channel. Negative divergences were put in place on what looks to be the final Draghi/Bernanke QEternity pledge induced thrust to new all-time highs in the stock. Note that there is a decent shelf of support
just below the channel around the 445.80 area so one might consider
shorting a 1/2 position on a breakdown of the channel, adding the other
1/2 once that support level goes. Stops TBD once the short entry is
triggered (a break below the channel). The weekly chart below shows
just how overextended MA has become this time around as well as the
clear pattern of sharp corrections following the breakdown of these
ascending channels.
