BA- Buy the recovery? or take partial profits? LONG
Boeing had a near disastrous start to 2024 with a Malaysian part falling off a MAX jet at 36,000.
Incidentally, going viral is that an iPhone survived the plunge fully functional. 20% got
shaved off the market cap. I bought the low with calls at $215 expiring March 15'24. They did
80% for the week and 16% today. News catalysts are that an East Indian airline company placed
a contract for the purchase of 100 jets of uncertain model. Delta Airlines also did not pull their
existing contract. These catalysts have allowed price to recover about 1/3 of the plunge. The
15-minute chart demonstrates the super trend reversal better than the 60 minute which is
shown here on the idea. The relative volume indicator is about 3 X the running mean showing
trader interest uptick. BA could short squeeze where short sellers quickly buy to cover &
capture profit while the synergistic rise is compounded by near buyers coming in to get ahead
of the chasing? The caution is that the POC line on the intermediate
term volume profile is $ 210 and so getting contracts extended above that has increased
risk based on price distance from the POC. The uptrend instead of a true recovery could be
simply a correction in the overall downtrend. I will take some of the week's profit off
the table and keep a close watch on the price action.
Incidentally, going viral is that an iPhone survived the plunge fully functional. 20% got
shaved off the market cap. I bought the low with calls at $215 expiring March 15'24. They did
80% for the week and 16% today. News catalysts are that an East Indian airline company placed
a contract for the purchase of 100 jets of uncertain model. Delta Airlines also did not pull their
existing contract. These catalysts have allowed price to recover about 1/3 of the plunge. The
15-minute chart demonstrates the super trend reversal better than the 60 minute which is
shown here on the idea. The relative volume indicator is about 3 X the running mean showing
trader interest uptick. BA could short squeeze where short sellers quickly buy to cover &
capture profit while the synergistic rise is compounded by near buyers coming in to get ahead
of the chasing? The caution is that the POC line on the intermediate
term volume profile is $ 210 and so getting contracts extended above that has increased
risk based on price distance from the POC. The uptrend instead of a true recovery could be
simply a correction in the overall downtrend. I will take some of the week's profit off
the table and keep a close watch on the price action.
Trade active:
Trade closed: target reached:
BA had great earnings. The position taken from the idea developed into awesome profits.
Trade active:
BA on a zoomed in view looks to be reverse upside. there have been three episodes
or bulish divergence on the RSI in the past week including presently.
My chart suggests a new leg up !
or bulish divergence on the RSI in the past week including presently.
My chart suggests a new leg up !
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