The white dotted line connects closing prices to show the downtrend is broken. After IPO the price steadily declined, but now price has turned and made a higher high. See notes on chart. I find this stock technically attractive because price has not yet shown a parabolic increase. I will be looking for weekly RSI to stay over 50 (it might test this level with a dip and rise). This stock will be good for a longer swing trade or investment. I have Jan. 2022 expiry, 20 strike, calls.
Thoughts on the break down? I was expecting that recent chart push to possibly set-up for a higher low. Seems to have come right back to range.
OptionsRising
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@Apux Thanks for asking. I am holding for now because a few weeks back there was some big money dark pool buying down here at this level. I would have liked to see price close over 10.80. If you are short term, then I would exit below yesterday's low, and below 10.50. I have this longer term so I am okay holding to see if buyers come in at this price.
pohaus
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@OptionsRising, I am short some $11.50 and $12 puts. Not worried about a potential put in. Will just flip to selling calls. In the mean time if we run back over $11.30 I can exit all at a profit.