WYNN 6 JAN 23 85/ 20 JAN 23 80BULL PULLBACK SET UP:
Since about the end of June this year, WYNN looks like its been gaining momentum towards the upside. At the beginning of November, the 20 day crossed over and upward movement continued bringing it back to the upward trend line from the June/July lows and is now high basing with a pull back to the 9 day and area of support at 75ish.
The bull pull back brought this stock back to an area of support at 75ish and today it's trading above the previous days candle triggering an entry at 78ish.
No stops will be applied as I will be positioned sized for max loss.
DIAGONAL SPREAD STRATEGY:
Even though the entire market is down today, This stock held up pretty well today which is part of the reason I got in. It likes this 78 area and looking like it wants to break out of here.
Because it gapped higher from the previous days high and held up on a down day, it solidified my entry and timeframe.
My target was determined by being aware of my higher upward trend line that was also recognized multiple days the back half of July. A couple outcomes I had in mind. My first, is that we break out of this resistance area of 78 within 2-3 weeks. We could possibly base between 75 and 78 this week and then breakout. Second outcome could be that we pull back more to the 20 day or 50 day and test the lower upward trend I drew by.... lets say..... by December 9th or 19th, that would be around the 71 or 72 area and then continue higher between this channel to get to 85 six weeks from today.
So if this decides to go against me and fall apart, I'll be set up for max loss and I'll move on to the next trade.
If this trades sideways for the next few weeks I'll still have enough time for this to break out. If not, I'm set up for max loss.
If this goes higher than my 85 target, I'll close out the entire combo before the 6th. I'll also watch this if this decides to fall back down into the apex of the trade.
