A few week duration Long here.
GSK seems to be hitting symmetry in the last timeframe.
There's some remaining price structure to balance out from the 37 levels.
The market knows 37 it can find buyers, it doesn't know 2x as far away at 45.50 if it can find sellers again.
I believe it needs to see 45.50 before it can test the VPOC lower or move lower back to 37 and even lower possibly.
I see "thick enough" volume up near 42-43 to get one last puff on the cigar before it tops out near 45.50 and rotates lower.
It's not overwhelmingly a "P" shape volume profile, so I'm not expecting anything near 48 or higher unless volume suddenly rushes in to accept a 43 VPOC.
It's a nice 3.1x : 1 Reward ratio for this trade with a stop behind the Low vol node in Pink line to the left.
Theory is that the LVN is an unfair price range and market will reject it in the future causing it to advertise higher prices into symmetry at 45.50 until it attracts sellers.
IMO, there's nothing wrong with this company, it's all the Brexit stuff that is causing the rotations and lower re-valuations. Regardless, the market actively value GSK correctly with all the Brexit math, and I want to read where it finds value and trade the edges of those parameters..
GSK seems to be hitting symmetry in the last timeframe.
There's some remaining price structure to balance out from the 37 levels.
The market knows 37 it can find buyers, it doesn't know 2x as far away at 45.50 if it can find sellers again.
I believe it needs to see 45.50 before it can test the VPOC lower or move lower back to 37 and even lower possibly.
I see "thick enough" volume up near 42-43 to get one last puff on the cigar before it tops out near 45.50 and rotates lower.
It's not overwhelmingly a "P" shape volume profile, so I'm not expecting anything near 48 or higher unless volume suddenly rushes in to accept a 43 VPOC.
It's a nice 3.1x : 1 Reward ratio for this trade with a stop behind the Low vol node in Pink line to the left.
Theory is that the LVN is an unfair price range and market will reject it in the future causing it to advertise higher prices into symmetry at 45.50 until it attracts sellers.
IMO, there's nothing wrong with this company, it's all the Brexit stuff that is causing the rotations and lower re-valuations. Regardless, the market actively value GSK correctly with all the Brexit math, and I want to read where it finds value and trade the edges of those parameters..