DIS retraced to 20 SMA, swing PUTS - low risk
Stock touched 20 SMA today, and this "first touch" or a close at/over 20 SMA usually results in a move back down. Usually I look for RSI to touch 50 or just cross it and then turn back down. Due to steep down trend the 14day RSI may turn down before touching 50, or it may take another day if stock price stays up. See today's closing candle and watch RSI, on daily and 30 min chart.
Strikes for puts can be 100, 95 (daily 10SMA), or 90.
Stops can be stock over 105 and over 106.
If stock moves higher you can switch to calls for 113, 120 targets on weekly chart.
Strikes for puts can be 100, 95 (daily 10SMA), or 90.
Stops can be stock over 105 and over 106.
If stock moves higher you can switch to calls for 113, 120 targets on weekly chart.
Comment:
I made a day trade on puts yesterday afternoon. I always update my ideas as new indormation comes in (price action over time). Seeing yesterday's doji candle, if today opens higher I am looking at calls very short term. 60min 20 SMA is coming out of cloud.
Comment:
30 and 60 min trends are up, while daily is down or flattening. use caution and take profits.