The pattern has set up a short in a weak stock within a weakening industry group. Ideally we get a back test to 76.50 but since the hourly chart has a minor back test yesterday a short position here is now valid. I have taken a small position and will add if we get a back test on Friday September 7, 2018.
H is forming a beautiful double top with strong Twiggs money flow divergence. We think it has strong down side potential if it breaks its 50 day moving average. We would consider $80 August puts @ $4.50
* Trade Criteria *
Date First Found- February 27, 2018
Pattern/Why- Double Top formation
Entry Criteria- From current level ($76.87) (Hit February 28,...
When you look at price action, what do you see?
1) Major trend direction. Long
2)Major support & resistance areas. Support is $55.00 & Resistance is $58.00
3) Last earnings was: positive or negative
On chart 8/3/17, was positive with 0.17 cent surprise (PA will go up in future)
It is very hard to trade stocks around EARNINGS.
4) What is Bollinger Band...
PLEASE SEE CHART FOR DETAIL OF CURRENT COVERED CALL, WILL START ON 6/5/17 (MONDAY).
HERE ARE TWO WEBSITES YOU SHOULD LOOK AT FOR MORE INFORMATION AND PRACTICE:
2) BORNTOSELL/COVERED CALLS.COM
HERE ARE FOUR YOU TUBE SITES YOU SHOULD LOOK AT FOR MORE INFORMATION:
1) CORE POSITION TRADING
H seems forming a head & shoulder formation. Moneyflow is getting down to the negative. We are looking for a speculative short if it shows weakness after reaching to $59 area.
On the option we would look for $50 November-17 Puts, currently $1.35
* Trade Criteria *
Date First Found- May 15, 2017
Pattern/Why- Head & shoulder formation
As you can see on the chart above, if you look at it in the long run(or trading long term), this is a result of a resistance point which is clearly labelled above.
First of all, how to identify a resistance point: the first thing you want to do when looking for a trade is to look for a resistance point, to tell if it is a resistance point or not, you have to see...