Good day folks,
Quick recap: we have an uptrend within a larger uptrend. It is bullish on an intermediate timeframe, life is good, no need to panic. The lately smaller uptrend is sitting on support, and it is holding (for now).
• I think that we are going to see consolidation in the first 2 trading days this week (see symmetrical triangle);
• We could see a bounce up, followed by a small selloff (green dot line). It is common after a selloff like we had Friday;
• I will be trading this consolidation both way, using weekly options;
• As you can see by the green dot line, if it happens this way, this would make a Head & Shoulder pattern on the chart;
• I’m gonna wait to see which side the breakout occurs (up or down of the triangle) before opening a new position, as I am not convinced yet of where the market is heading. The indicators (50 MA, RSI) look bearish though.
Cheers,
Quick recap: we have an uptrend within a larger uptrend. It is bullish on an intermediate timeframe, life is good, no need to panic. The lately smaller uptrend is sitting on support, and it is holding (for now).
• I think that we are going to see consolidation in the first 2 trading days this week (see symmetrical triangle);
• We could see a bounce up, followed by a small selloff (green dot line). It is common after a selloff like we had Friday;
• I will be trading this consolidation both way, using weekly options;
• As you can see by the green dot line, if it happens this way, this would make a Head & Shoulder pattern on the chart;
• I’m gonna wait to see which side the breakout occurs (up or down of the triangle) before opening a new position, as I am not convinced yet of where the market is heading. The indicators (50 MA, RSI) look bearish though.
Cheers,
Trade closed: stop reached:
Did not work out.