After the "healthy" correction, kc touched the 100 day MA around 153 as indicated previously as a potential target. Furthermore, we are hitting the lower end of the trend channel (blue).
I am looking for some support coming in here.
As vol softened during the sell off, threeways, selling put spread, buying call seem to be good long market, long vega strategies...
Market taking a breather after the recent rally. I would think that the market is taking a break from the rally for now. Corrective levels below are the 7 day MA at 164ish, 20 day MA at 158 and 100 day MA along with the lower line of the upsloping trend channel.
Option vol went out on the move, but commercials seems to be selling as physical prices in Brazil are...
Pro Long (Chart):
- RSI and Stochastik created buy signal
- Orange support line
Pro Long (Physical):
- ICE warehouse stocks new lows
- spreads tightening ever so slightly
- still in middle to upper end of trend channel
- room to go in terms of lower Bollinger band
- long term trend still down
- risk/reward for long position not there