I entered a long position at 12.69 with a Stop at 11.63.
If this thesis is correct, I will let this run and raise my stops along the way.
Areas of the interest are highlighted by the Blue and Orange lines using key Fibonacci levels.
The orange boxes depict Golden Pockets levels that I identified.
Banks are falling and conversely, FAZ has been on the rise. We appear to be at 2 points of resistance; first is the descending wedge that has been forming over the last several months. 2nd, we seem to be back in that descending channel and nearing resistance. However, the 3rd point of resistance is the ~$11.50 price that has acted as historical support and...
with volume support. Also very low (current) IV could be interesting to enter with a single contract instead of a vertical.
Despite the low IV, a straddle does not look too great as you'd need to give it a month to expiration to increase the wining probability which makes it expensive hence not interesting.
After nearly a decade of growth in the stock market, many believe the "bubble" will soon pop. With trade wars between the US and China looming in the shadows, we may be seeing a reversal in the near future. This stock, FAZ, is a 3X inverse ETF of the financial index. At the height of the 2008 crisis, this stock hit highs of over $100,000 per share. As the market...
The Trump rally has the financials arguably overbought. Interested on people's take on the rationale behind price tag of these financial stocks. FAZ provides a great opportunity to profit from a selloff.
On a TA standpoint, it appears that we had an all time low on September 8 2016. Since then, we are having higher lows within some kind of triangle with good resistance at 33.11.
Slowstoch or RSI are not even close of indicating any direction as to what direction one should take this trade.
But I guess this post is more fundamentals based positioning than a TA...