When I bought puts on Monday, I was trading mobile and admittedly my chart reading was incomplete. After I bought weekly puts price started higher Tuesday and spent the day selling off. Note 532 was exactly the high and it was a beautiful day trade even with low volume options.
Yellow lines show the megaphone still intact.
RSI never crossed 65 during the price rise since June, and now it it staying over 37. I lean bearish because:
1. price is near all-time highs and may see profit taking when healthcare sector is no longer top choice
2. RSI dipped below 33.33 in June, now it may go back below 50 if price moves down lower
3. Stochastic %K gave a sell sign in 3 candles in October - zoom out and see when this rolls over price will head to 470
Yellow lines show the megaphone still intact.
RSI never crossed 65 during the price rise since June, and now it it staying over 37. I lean bearish because:
1. price is near all-time highs and may see profit taking when healthcare sector is no longer top choice
2. RSI dipped below 33.33 in June, now it may go back below 50 if price moves down lower
3. Stochastic %K gave a sell sign in 3 candles in October - zoom out and see when this rolls over price will head to 470
