CHART ANALYSIS
- We've followed the drop and the cup and handle formation which led to where we are today at the 0.382 fib retracement broken out from the descending wedge
- The volume has fluctuated with the apex on Mar 20. In general, I've noticed that volume shows a parametric distribution during a bounce with the peak at the true bottom. I think we have passed that point now and we are going to see decreasing volume from the sell side.
- Sell/Buy rates have flipped to buyers. Possibly from fed money, but it doesn't really matter where it comes from in my opinion. Accumulation has stayed stable at this level for the last two weeks.
- Next few weeks I think we see a return to the 0.236 fib level (~$113-115) before we break up. Looking at the BBs, we have changed direction and crossed the center line. We just hit the upper BB now and we'll continue to follow it.
Stocks vs. Options here
- Stocks = safe to play. Modest return in short term. $141 PT by next month.
- Options = still high IV (60%). If you buy now, you risk getting crushed. I would wait until the 0.236 fib level to buy. I would go for 6/19 $140C with bid @11.20/CT
- We've followed the drop and the cup and handle formation which led to where we are today at the 0.382 fib retracement broken out from the descending wedge
- The volume has fluctuated with the apex on Mar 20. In general, I've noticed that volume shows a parametric distribution during a bounce with the peak at the true bottom. I think we have passed that point now and we are going to see decreasing volume from the sell side.
- Sell/Buy rates have flipped to buyers. Possibly from fed money, but it doesn't really matter where it comes from in my opinion. Accumulation has stayed stable at this level for the last two weeks.
- Next few weeks I think we see a return to the 0.236 fib level (~$113-115) before we break up. Looking at the BBs, we have changed direction and crossed the center line. We just hit the upper BB now and we'll continue to follow it.
Stocks vs. Options here
- Stocks = safe to play. Modest return in short term. $141 PT by next month.
- Options = still high IV (60%). If you buy now, you risk getting crushed. I would wait until the 0.236 fib level to buy. I would go for 6/19 $140C with bid @11.20/CT
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.