MDT has a fresh down move that was supported at $72.30. The area of support encompasses previous price action the weekly 200sma. Currently, prices have made the first leg of a 2 leg retracement with a 2nd leg in the $77-$78 price level.
The concern with this trade is the bounce off 200sma and previous support may drive prices beyond the $79.50 level of bull/bear battle. In addition, the downside is limited to the previous support.
However, there is still a solid area for a continuation move down and price action if medical continues to weaken as a sector.
Buy Jul17 Puts @ $4.1 and $3.6.
Good Hunting!
The concern with this trade is the bounce off 200sma and previous support may drive prices beyond the $79.50 level of bull/bear battle. In addition, the downside is limited to the previous support.
However, there is still a solid area for a continuation move down and price action if medical continues to weaken as a sector.
Buy Jul17 Puts @ $4.1 and $3.6.
Good Hunting!
Note
Updating prices based on the current delta and option price. Our new option price range is Jun17 @ $3.6 and $3.05. I noted I had a mistype in the initial trade idea. There are no July options for MDT. Looking for an initial sell and first profit target in the $74 area of previous support/resistance.Trade closed: stop reached
Prices trekked up higher, with increasing RSI strength prior to earnings. The 2nd leg up was a strong spike and channel on the daily chart and continued higher through the channel. Earnings were positive and prices spike to $80.98. Prices may be vacuumed to the daily 200sma. I wanted to close and reevaluate the price action after earnings.Note
I had entered at $77 price level @ $3.6. Exited today @ $1.72.
Substack - The Bandito Review
@egrajek
@egrajek
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.
Substack - The Bandito Review
@egrajek
@egrajek
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.