DHI is currently in a downtrend under the 200 ema After reaching low of 60.00, pulled back and broke above resistance level at 76.00 The breakout is deemed a failed breakout after price falls back below 76.00 Price has the followed by making a series of lower lows creating a downtrend line
Price is currently at resistance from down trendline, an area of value. This is my cue to enter trade short.
@whateverdarkmatter, Trade hasnt been stopped out so my set-up hasnt been invalidated
whateverdarkmatter
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How do you feel about this trade still? I am sitting on a large # of 1/20/23 PUTS at $60 strike... Thinking this chart is playing well to my thesis and we touch the June lows of 59 and break.
rudcharts
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@whateverdarkmatter, Im very confident in this trade but if it doesnt work out, my risk is managed. Pretty straight forward here, it just needs to continue to hold the downtrend line its created You did good with the exp. date but i dont like the strike price. I like to try and get in as much in the money as possible when buying these options. If you cant afford it, then find something that you can. My target is 60 on the swing. It could go lower but you have to expect some buyer pressure to come in just because its at a would be support level.