Watching GPS. Hoping for a fade and hold back to the 200 ( green dotted line) off the open. If I don't get the pull back I will wait for a break
of the pre market high and a hold above 30. Noticing a lot of earnings break away gaps so this may just run.
After gap down, Up trend start, now UP triangle formed
If price break out @32.40, we can see continuation of the up trend
Always remember about false break - if false break out of @32.40 happens and the price will return back into the triangle, you need to close position immediately.
6 days ago Gap struggled to continue after a 1 month upward trend..
It halted its steady course at $34.21
This was an excellent sign for traders to short it...
It took a long, hard and struggling 5 days of patience for Gap to finally break and validate this trading idea.
Nice price movement gives another long trade opportunity as Elliot impulse and correction waves have finished, additionally, completed inverted SHS pattern confirms upward movement. on Stochastic oversold, now what we need is to watch for good bullish candlestick before opening position. On SPx500 also bullish breakout.
GPS is currently forming a bullish cypher. The D leg of the cypher was initiated by the completion of a bearish AB=CD pattern. I purchased a few OTM puts at the completion of the AB=CD pattern and will keep them until price action approaches the the potential reversal zone of the cypher pattern.
The Coppock curve has been broadening in the last few weeks - this could be showing a potential swing trade. Also, the stock has a 50 MA resistance which could be a defining moment if the earnings report is a beat. Furthermore, the stock has not really shown any chart pattern in the last few months, but the volume has been decreasing ever since the stock jumped....
The open interest (OI) on the 15-Sep-17 21.00 strike increased by 15 call contracts and 16,554 puts. The total OI for the expiration was increased by 17,661.
High implied volatility rank, high implied volatility, earnings/volatility contraction play ... .
Metrics:
Max Profit: $203/contract
Max Loss/Buying Power Effect: $197/contract
Break Evens: 22.97/27.03
Delta: -6.38
Theta: 2.03
Notes: I'll shoot to take this off at 25% max profit ... .
