CASTROL - A possible bounce from 175- 180 region
Monthly is bullish. Several times before price graced 175 - 180 region and moved up. Last couple of months, market sold at lower prices giving a lower high sequence and hiting the 180 resistance. This resistance point is getting weaker as price navigates through that area more often. Also, there is very high open interest build up in long 200 and 210 strike which acts as resistance for the moment.
The opportunity is to wait for a bounce from around 175 - 180 area and participate in the rally to the upside. The current open positions will need to get covered and that alone will push the price higher. I will be using options to play this bounce if it happens using 15, 5 and 1 minute charts with 2 ATR stop in 1 min. If it breaks 175 - 180 region to the downside then I will not take the trade.
The opportunity is to wait for a bounce from around 175 - 180 area and participate in the rally to the upside. The current open positions will need to get covered and that alone will push the price higher. I will be using options to play this bounce if it happens using 15, 5 and 1 minute charts with 2 ATR stop in 1 min. If it breaks 175 - 180 region to the downside then I will not take the trade.
Order cancelled:
Trade never got triggered. Looks like it is heading to the downside.
a236z