XBI is testing +2 sig from the last range selloff. There was fair respect for the Average on black line but the high value seller did not return at +1 sig.
So now at +2 sig I don't think it's likely the seller returns aggressively enough for a push down.
The much longer timeframe seller got filled in July at +1 at the Red line and has continued to sell. If the program still has more capital to sell it could cause a sideways maket enough to sell 86 or 88 strike depending on where the credit on risk is. Probably more like 86/88 spread.
But 88/90 would be preferable because the near term selling range would have been exceeded at that point and it wouldn't make sense to be +4 sig on the near term out of range. The higher range would take precedence at +2 sig green line.
Personally, it "looks" like it's extending and reaching up to engage liquidity, not return to any value area extreme and continue a trend. And I "think" that liquidity is trolling for engagement around 81.25 at the moment.
So now at +2 sig I don't think it's likely the seller returns aggressively enough for a push down.
The much longer timeframe seller got filled in July at +1 at the Red line and has continued to sell. If the program still has more capital to sell it could cause a sideways maket enough to sell 86 or 88 strike depending on where the credit on risk is. Probably more like 86/88 spread.
But 88/90 would be preferable because the near term selling range would have been exceeded at that point and it wouldn't make sense to be +4 sig on the near term out of range. The higher range would take precedence at +2 sig green line.
Personally, it "looks" like it's extending and reaching up to engage liquidity, not return to any value area extreme and continue a trend. And I "think" that liquidity is trolling for engagement around 81.25 at the moment.