CVNA on a 30 minute chart trended up from November post earnings for 6-7 weeks until
December 20th and then started falling from a head and shoulders pattern at the pivot.
The Fib retracement tool is used to draw the retracement of the prior up trend. The Trend
Based Fib Time is used on that prior up trend to show fib levels across time instead of price.
Price is currently at the 0.5 Fib retracement for price and also at 0.5 for the latter tool.
The other indicators show rising RSI, a flip between positive and negative directional indices
and volatility beyond the running mean. I will take a long trade here targeting 52.3 which is
just under a 0.5 fib retracement of the recent trend down. The stop loss will be set
at 42.8 at the level of the reversal narrow-ranged candles. A option trade will be entertained
for the February monthly expiration.
December 20th and then started falling from a head and shoulders pattern at the pivot.
The Fib retracement tool is used to draw the retracement of the prior up trend. The Trend
Based Fib Time is used on that prior up trend to show fib levels across time instead of price.
Price is currently at the 0.5 Fib retracement for price and also at 0.5 for the latter tool.
The other indicators show rising RSI, a flip between positive and negative directional indices
and volatility beyond the running mean. I will take a long trade here targeting 52.3 which is
just under a 0.5 fib retracement of the recent trend down. The stop loss will be set
at 42.8 at the level of the reversal narrow-ranged candles. A option trade will be entertained
for the February monthly expiration.
Trade active:
Nice price action to begin the week. Stop loss on call contracts raised to 10% below
break- even.
break- even.
Trade closed: stop reached:
Broke down and out. Moved to the injured reverse list to watch over there for
a rebound vs more downside.
a rebound vs more downside.
Trade active:
Going short now with puts which did well today TSLA falling may be impacting.