HUT Is Primed To Test Its Moving Average (SHORT)
HUT Mining should go lower in the next 1-2 weeks for a number of reasons:
1. Bitcoin has corrected in the last week, but HUT's pricing hasn't proportionately reflected the drop yet.
2. Volume has dried up since BTC's drop, this often happens before the price returns to a more stable support band like the 33-day moving average.
3. RSI is showing that it is overbought and moreover the RSI is in a rising wedge pattern.
4. Other crypto-mining stocks HUT is correlated to have decreased much more than HUT.
I opened a position today, a $9 put option expiring October 15th. I suspect we're only 5-7 trading days away from the 33 DMA though. My exit strategy is to sell the option when the price reaches around $8 for a 74% profit.
1. Bitcoin has corrected in the last week, but HUT's pricing hasn't proportionately reflected the drop yet.
2. Volume has dried up since BTC's drop, this often happens before the price returns to a more stable support band like the 33-day moving average.
3. RSI is showing that it is overbought and moreover the RSI is in a rising wedge pattern.
4. Other crypto-mining stocks HUT is correlated to have decreased much more than HUT.
I opened a position today, a $9 put option expiring October 15th. I suspect we're only 5-7 trading days away from the 33 DMA though. My exit strategy is to sell the option when the price reaches around $8 for a 74% profit.
Comment:
With the news of the vague offering, this trade changed. I closed out my positions for a surprisingly quick profit (+92%), but this one was all luck. Most traders are in the dark right now about the short-term future of this stock's price and with how the price of Bitcoin is continuing to increase currently I'm uncertain how this trade would have turned out if not for the announcement.