Since we last looked in on this airline industry ETF five weeks ago, it has staged a failed rally and resumed a decline from what I’ve predicted will be a major top. Notice that the low of a decline on Thursday pierced a midpoint Hidden Pivot support at 21.86. This suggests more downside over the near term to at least p2=20.98. I am recommending a ‘mechanical’ short on a rally back up to p=21.86, provided it conforms to our rules. I have sketched out a representative picture for your guidance, but you shouldn’t attempt this type of trade unless you understand how to keep risk:reward constant at 1:3, per my guideline. If you’re uncertain about this, please don’t hesitate to ask for help in the chat room. _______ UPDATE (July 6, 10:35 p.m. EDT): The bounce blew through 21.86 on the next bar, negating the trade. You can still attempt it at 22.75, stop 23.05. _______ UPDATE (July 8, 11:41 p.m.): Cancel the trade, since it’s become too labor-intensive to monitor the set-up.
