EXEL's chart is interesting right now. It has been in a falling wedge since June.
It seemed to flip in July, but broke down again on Monday when it dropped as low as 33.8-ish
But it broke the resistance line fairly easily yesterday and it seems to be bullish once again.
The falling wedge seems like it could break on a decent earnings report - or even before then.
Ideally, I'd like to see it re-test the support that's at about 37. If it holds that level, or breaks the wedge, I'll start looking at options for a trade.
The other reason I like the potential of this trade is the volume gap that sits from about 41 to 44.
The downside to this trade? I'm not sure EXEL's value supports a jump. My 1 year targe on EXEL is about 44. So it's not exactly undervalued.
That said, I like the risk reward of this trade. Call options at the current price (38 strike) for the first available date after the earnings are about $2.25. I'm more likely to buy a call here than buy the stock outright to manage the earnings risk.
We'll see how this plays out over the next week and I'll update.
It seemed to flip in July, but broke down again on Monday when it dropped as low as 33.8-ish
But it broke the resistance line fairly easily yesterday and it seems to be bullish once again.
The falling wedge seems like it could break on a decent earnings report - or even before then.
Ideally, I'd like to see it re-test the support that's at about 37. If it holds that level, or breaks the wedge, I'll start looking at options for a trade.
The other reason I like the potential of this trade is the volume gap that sits from about 41 to 44.
The downside to this trade? I'm not sure EXEL's value supports a jump. My 1 year targe on EXEL is about 44. So it's not exactly undervalued.
That said, I like the risk reward of this trade. Call options at the current price (38 strike) for the first available date after the earnings are about $2.25. I'm more likely to buy a call here than buy the stock outright to manage the earnings risk.
We'll see how this plays out over the next week and I'll update.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.