Hi, traders. My name is Lukas and I am a beginner in trading, respectively, I only trade 9 months. But that means I have to do the necessary analyzes without it I can't trade. I want to show you how I work on myself and document my beginnings. I use Vix and my strategy is built on to return to average. I highlight the important support levels and resistances that flow from the volume profile, all drawn on graph. These zones determine the ability to respond in some way to the market from 1 to 3, with 1 being the largest.
Short description of analysis:
We are located in a very strong support zone, which is based on the very history of price fluctuations. It also corresponds with the VIX index. The holding period is possible for a period longer than 10 months. It contains a very interesting dividend and the original price before the ronacrisis was about 70 USD. So it is rather an investment, but very logical.
Based on your graph there are 2 support levels ? One at around 38 and the other at 20??? But i believe mar Low is 31 . I don’t believe it will revisit 31 considering we have already come out of lock down in mar . Would like to hear your view of where is the next strong support level since it has already gone down below 38. Now at 36.90
AlAlawiAlawi
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@Declutter69, got my stops at 35$ with and average price of 39$ looks like this will hit my stops if it doesn't pick up this week.
Hedging doesn't look good on this stock as the volatility is just not enough and would probably cost more on swaps till it kicks in or Trump starts a world war to stay in power to lift this stock up hahaha...
Lucas_Sochulak
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@AlAlawiAlawi, HI, Sorry for my late reply, too. Yeah, but I hold this stock longer than 1 year and i minimalize risk with this problem, but I still seeing long position, because stock is deviated from the averege price.
AlAlawiAlawi
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@Lucas_Sochulak, Thanks for getting back, pulled out at a loss around 37.5$ today .... The empty skies from airlines and the excess pink slips in the aviation industry has just spooked the term view even till next year ... I think I am able to recover from JP inflation statement tonight but investing in companies with the highest revenue per employee (Tech generally)
Lucas_Sochulak
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@AlAlawiAlawi, yeah, my plan is when XOM will am flat and VIX will at REzistence zone (37-45 points) and I make some new long position and reduce the average price.
Lucas_Sochulak
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@Declutter69, heLLO! Sorry for my late reply. Firstly, I have one support local zone at 42 - 37 USD, but are rouhly values. It is reatction zone. And 20? Where do you see 20 ? Resistence is 50 - 55 USD. The second thing is in market we must plan and what do you want with this stock. And I wrote, that timeline is possible longer than 10 months. Then, I might minimalize factor : Prresident´s election, corona virus, Fed´s monetary politcs.