IvanLabrie
Long

Long call trade: EWZ - Yacine Kanoun inspired

AMEX:EWZ   ISHARES MSCI BRAZIL CAPPED ETF
278 10 11
Yacine Kanoun brought this stock to my attention.
I'm considering purchasing calls with a strike price of 40usd and an expiration date on March 6th.
The spread between USDBRL             and EWZ             is reaching similar percentages to what has show in the past, so I think that it's due for an adjustment, and thus agree with Yacine.

I also spotted a technical key level, which I want to see the stock avoid to retest during the next week, for a time at mode buy setup to confirm.

My own indicator displaying bands shows price reached an extreme low, and so does rgmov.
The retest of the supply area seen in the last high, but on lower volume is a bullish signal as well.

Remember to risk less than 5% on each trade, in this case, I'm considering a 1.5-3% risk.
Good luck!
Yes, but not so long perhaps?
its linear scale
snapshot
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sigmadict jangseohee
very good observation , ty will place appropriate limits
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sigmadict jangseohee
I think this broken support line is not to be taken in consideration, since the big resistance is at 2009 low, where all the money was dump in, also i think there is accumulation since this resistance and current price, please validate and let me know ! I think we are going up, but it's only my personal bet
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I still have the options running, but the market is giving bulls warning signs.
You have to check your own emotions, and the general concensus often, to gauge if your emotions are betraying you and you're falling into a trap.
Sometimes, obvious price action seems to obvious but still happens, so, better be ready and be flexible.
I'll let it run, since it represents a small loss if it goes badly after the expiration.
+1 Reply
jangseohee IvanLabrie
Good strategy Ivan
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jangseohee sigmadict
you are right sigmadict,
in fact S/R is a region because of those tails
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If we stay at this level without retesting the dotted white line for a week, this is a strong sell signal now.
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lets update.. a break of the black support will mean high change price go to channel bottom
snapshot
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IvanLabrie PRO jangseohee
Move that support line higher...I'd reccomend checking out Tim's charts with volume profile in them for this.
His older charts cover time spent at price support in more detail too.
+1 Reply
Ended up being a buy much later on.
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