OptionsRising

OptionsRising Updated 

Last week I was bearish and had a great swing put trade on GME. Now I see stronger reasons (technically speaking) for price to move higher. On the chart: * Price opened over downtrend line, pulled back and held it as support (seen on regular candles) * 30m volume is red at the open, but switch to 5m and you see more buying * Heiken Ashi shows a strong green...

OptionsRising

I posted this chart yesterday, and here is a follow up about the red line - price made a lower low yesterday. It has tested the red line a few times and cannot close over it. RSI has not tested 50 yet, so price could go up again but that red line resistance matters. There are more bearish signs on the hourly chart and price could head lower by about 5k, to the...

OptionsRising

I have seen so many crypto charts with all sorts of markups and complicated indicators on them. Here is an example of a textbook trade setup that was easy to see. When bitcoin plunged on the 22nd you take that as a warning because the uptrend (gray line) broke and you know price is extended on multiple timeframes. Once the uptrend breaks you look for overhead...

OptionsRising

You can see how the green line is resistance. Also just overhead are the Kijun and 20sma (on 30m chart). There are lower highs and lower lows on the chart as well, and the 20sma is below the cloud and clearly downtrending. RSI on weekly showed bearish divergence and may be coming down from overbought levels. Stochastic is rounding down on the daily. Look...

OptionsRising Updated 

The green arrows show when price retraced, RSI also dipped below 50 and came back over the next day. If RSI is higher by end of day and price moves over yesterday's high, that signals more upside. Stochastic looks ready for a bounce. Choose your timeframe and take profits accordingly. My initial stop losses: < yesterday close, < 30. It is better to reenter a...

OptionsRising Updated 

I am posting this chart to explain the weekly 46 puts I bought this morning. The video in my stream froze so the chart visual does not match my speaking. First let me start by saying the green line and rectangle show an excellent call trade I took after posting the previous GME idea, in which I was looking for call trades. I also took a quick day trade last...

OptionsRising Updated 

I recently posted a chart for a swing put trade idea (linked) and that did not work out. Small caps rallied after price bounced off the daily 20sma. I was looking at bearish divergence (marked on previous chart) and IWM's price retreated to the 20sma. Yet I have to note the volume difference between this current rally and the previous days of selling. Seems...

OptionsRising Updated 

In January 2021, you a quick selloff in XBI caused RSI to dip below 20 while directional selling volume also spiked over 50 (yellow rings). This "oversold" condition led to a quick sharp up move (yellow arrow, RSI crossed up over red line), then consolidation before a prolonged move higher. Now I am looking at a peak in RSI and a spike in directional buying...

OptionsRising Updated 

*** This is not a gamble. This is a technical-based trade with planned entry and exit. I have been patiently watching price action and indicators. Let's focus on last seven days here only. White arrow shows a big green candle with high volume, and a sharp RSI and stochastic move up from oversold conditions. Price reversed on equally high volume (which is my...

OptionsRising Updated 

Sometimes a line chart provides clarity. Here you see a visually simple and compelling reason for a swing put trade. The white trend line begins in Feb-Mar 2020. After price recently went over the line I had a nice swing put trade as price made a rapid fall and came back below the line. Now it is up against the line in a retest, which is a great place to enter...

OptionsRising

This is a very interesting daily chart for me. RSI (7 day) dipped below 50 and is back over today. If it closes over 50 then tomorrow a trade over today's high gives a trigger long. Yesterday's candle closed at 20sma, and stochastic below 20 should support a move higher in price as it turns up. The TTM is quite negative and while it does not give a buy signal,...

OptionsRising

The trade idea is linked. What a move down today, more than I expected. One important point - I bought 2/12 40 strike puts yesterday and today my option price did not increase much at all because VIX fell so much. If you took weekly puts on this today, you should have taken trimmed or closed out already. If your objective was a day trade, then be happy with an...

OptionsRising

The stock market news headlines rarely matter, and they almost never correctly explain market moves. Here is what I see on SPY that gives me reason to take puts early (small position): * island reversal at top (blue box) * RSI dipped below 33.33 and is now testing 50 line (red dash) - tomorrow RSI will be lower if SPY fades down * 4-10-20 moving average cross...

OptionsRising

The indicators point to buyer exhaustion, hence a pullback in price before Virgin Galactic makes its test flight. Price action shows a 5-wave pattern (white zig zag line) RSI corresponds to this with three peaks in overbought territory TTM squeeze is high and we can expect some gray bars as momentum eases If you buy 2/12 or 2/19 puts you have time for...

OptionsRising

I have linked Monday's trade idea. I believe in technical trading, not gambling, and certainly not greed. Hence I have sold my calls with a fabulous gain. You may choose to hold a bit for more upside, but be honest with yourself (all short squeezes eventually end) and take at least half of your profits!

OptionsRising

The blue bar on chart was a resistance area and price today opened above it. As long as RSI stays over 50, I am looking for this stock to move higher once short squeeze kicks in. The green line on DMI will start moving higher if this move occurs.

OptionsRising

A recent IPO stock, ABNB got off to a high-flying start. However after dropping from the 170's, price could be in a bear flag. On 8 Jan you see a big red candle (white arrow) followed by consolidation. That drop caused RSI to test 50, and at the end of the week there was another dip and bounce at the 50 line. Look for one of two trade triggers here. If ABNB...

OptionsRising

In September when one big red candle undid the previous five days, SPY fell about 25 pts. You can see the daily resistance line in my previous SPY post, linked. Market tried to hold over the line and finally gave up yesterday. There was volume on the selling as well, with a steep RSI drop (like Sept). Usually there is bounce on touch of the 20sma (green dashed...