TradingView
AwesomeAvani
Sep 4, 2022 6:51 PM

LABU 3X LEVERAGED BIOTECH ETF on support for LONG Long

AMEX:LABU15
Direxion Daily S&P Biotech Bull 3X SharesArca

Description

⋅
AMEX:LABU

LABU a 3x leveraged EFT in the biotechnology sector has diverse holdings.

My thesis is that biotechnology and healthcare are relatively unhinged from the broader general market.

On this 15 minute chart, consolidation at support is seen in July, Price then rapidly rose

into a triple top in mid-August followed by a descent into a double bottom at the support level.

This is a leveraged ETF with good volatility which can be traded.

The volume profile of July through mid-August sets a POC as 8,65. This is the best support level

within the zone. In the same fashion the volume profile of mid-August through the present sets

a POC at 12.45 which is the bottom of the resistance zone. The spread is approximately 40% upside

over perhaps two weeks of the expectant uptrend.

The zero-lag SMA / EMA oscillator is showing green at its most recent print with an uptrend noted.

I will take a trade in a call option with a strike 20 % higher than current price

given the potential immediate upside of 40%. I will select an expiration in 4-6 weeks and hope

for a 100-200% return.

Trade active

⋅
Call options are up 80% already. might take 10% off the table tomorrow just to
make a little bank to close the week.
Trend AnalysisVolumeVolatilityLABULABDbiotechologyETFbiotechstocksbiotech
Comments
FlashingGraphs
⋅
Thanks for sharing. I agree that LABU has likely bottomed around the $4-5 range. However, don't you think with indexes likely re-testing YTD lows in Sept/Oct, LABU will drop back in the $4-5 range? Thanks!
AwesomeAvani
⋅
@FlashingGraphs, as you can see the price now is over $9 = Call options are up 80% already. might take 10% off the table tomorrow just to
make a little bank to close the week.
Tradersweekly
⋅
Thanks for sharing, and good luck!
AwesomeAvani
⋅
@Tradersweekly, Good luck and best analysis did come my way ! Call options are up 80% already. might take 10% off the table tomorrow just to
make a little bank to close the week.
Tradersweekly
⋅
@AwesomeAvani, Smart decision, in my opinion.
More