LABU 3X LEVERAGED BIOTECH ETF on support for LONG
Updated
LABULABU a 3x leveraged EFT in the biotechnology sector has diverse holdings.
My thesis is that biotechnology and healthcare are relatively unhinged from the broader general market.
On this 15 minute chart, consolidation at support is seen in July, Price then rapidly rose
into a triple top in mid-August followed by a descent into a double bottom at the support level.
This is a leveraged ETF with good volatility which can be traded.
The volume profile of July through mid-August sets a POC as 8,65. This is the best support level
within the zone. In the same fashion the volume profile of mid-August through the present sets
a POC at 12.45 which is the bottom of the resistance zone. The spread is approximately 40% upside
over perhaps two weeks of the expectant uptrend.
The zero-lag SMA / EMA oscillator is showing green at its most recent print with an uptrend noted.
I will take a trade in a call option with a strike 20 % higher than current price
given the potential immediate upside of 40%. I will select an expiration in 4-6 weeks and hope
for a 100-200% return.
Trade active
Call options are up 80% already. might take 10% off the table tomorrow just to make a little bank to close the week.
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.