Direxion Daily Energy Bear 2X Shares (ERY)

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FWIW IMHO when I look at 5 and 15 minute charts, I consider them scalping trades. Occasionally if price is at a major support/resistance they can be an indicator of a trend change. But right now price is in the middle of a larger ascending triangle pattern, so I still look at it as scalping.

Taking trades in the middle of patterns can be a bit risky as it can either go back up or down. So I like to look at multiple time frames to see what we might be up against.


Monthly ERX could close with a longer upper wick, bearish.


Daily ERY now that we have some swing highs and lows we can start to draw in some trend lines. Trading as close to these trend lines is the higher probability trades for winners IMHO



Daily ERX I thing that a lot of traders like to take profits at the .618 fib retracement.


Same holds true for the opposite direction


This also looks like a Bat pattern, which has a first target of .618 and then a second target of the XA measured move and possibly a 1.27

http://www.profitf.com/articles/patterns/harmonic-pattern-bat/



ERY 35.35 seems to be an important area


15 minute chart looking for possible support on ERY


ERX can be a falling knife for now.

Best of luck next week. I will be looking for a possible entry on ERY

I like the 60 minute bat pattern chart with the .618 target 1 for ERX which is still bullish for ERY. Gets confusing. LOL but it seems a bit easier to chart ERX on the 60 minute chart and ERY on the 15 minute chart.

OK, just some thoughts. I like to post the different patterns on ihub so that I can look back to them during the day when I am away from my computer while working so I can see if any of the targets are close to hitting.