$LOW Short
I have been watching this stock for a while now, and have started to notice some serious bearish signals on long time frames --> 1D - 1M.
1) Above, you can see a MASSIVE bearish divergence on the monthly chart, while we are extended, coinciding with this market cycle. THe volume has also been dramatically low.
2) Above you can see that we are now about to fail to make a new ATH for the third time in this range, with 2 very bearish candles now printed on the daily, and the Stoch RSI extremely overextended on even more decreasing volume.
3) While the weekly has not finished printing yet (it is Monday as of posting this), I will be looking for short opportunities tomorrow and throughout the rest of the week, and am willing to set a looser stop on this position given the macro trend I am trying to capture with a longer term options bear put spread.
4) I have not picked a specific target yet, and have been eyeing strike prices and position setups, will continue to update when I take this position. In general, just off of a quick look at my price levels and trends on the daily, I would say that targeting in between $100-110 is extremely safe, and even between $92-95 could be very realistic as well.
5) Based on the past swings on the daily and weekly time frames, I will probably be targeting bear put spreads that are 45-60 days out in order to give myself time but still capture theta.
1) Above, you can see a MASSIVE bearish divergence on the monthly chart, while we are extended, coinciding with this market cycle. THe volume has also been dramatically low.
2) Above you can see that we are now about to fail to make a new ATH for the third time in this range, with 2 very bearish candles now printed on the daily, and the Stoch RSI extremely overextended on even more decreasing volume.
3) While the weekly has not finished printing yet (it is Monday as of posting this), I will be looking for short opportunities tomorrow and throughout the rest of the week, and am willing to set a looser stop on this position given the macro trend I am trying to capture with a longer term options bear put spread.
4) I have not picked a specific target yet, and have been eyeing strike prices and position setups, will continue to update when I take this position. In general, just off of a quick look at my price levels and trends on the daily, I would say that targeting in between $100-110 is extremely safe, and even between $92-95 could be very realistic as well.
5) Based on the past swings on the daily and weekly time frames, I will probably be targeting bear put spreads that are 45-60 days out in order to give myself time but still capture theta.
Note
I also do not see us getting over that golden line of around $117 any time soon, at least not in this weekly cycle. So, I will probably target out of the money bear put spreads within the range of where we are at the time of this post ($114.79) and ATH ($118.72).Note
Noticed I said bear put spreads, meant bear call spreads*** You get it... the idea is this is going down long term.
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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.