Short Term Long Position: OPTIONSWell hello there...Although I am not personally in this trade, I love to help out my fellow traders. I can see how someone can make the argument that a CALL OPTION to $18 could be a good idea. The daily chart shows that the stock is resting on strong support after weeks of a bearish trend. In addition to the 4 hour chart showing strong bullish signals. The only thing to be cautious about is the RSI only being at 40. If this gets rejected, it will reject HARD.
IQ trade ideas
IQ 15.07.19 LongAsset and Time frame - IQ, Daily & 4H
Entry Price -19.27
Exit(Stop Loss) -18.80
Exit(Take Profit) -21.90
The range between SL and entry -0.47$
Technical Analysis -Daily chart made a bullish engulfing candle, price reacted to the 61.8 Daily Fibonacci, on the 4H chart price reacted to the -61.8 Fibonacci level and about to react to it again, the price couldn't break the corrective trend line,I placed a Limit order at the price of 19.27 in order to get the maximum from this trade,RSI on 4H and Daily did not reach below 40 level.
Why not enter the trade -The price already reacted to the -61.8 level.
What direction does the market move -Bullish
What can be improved -
Conclusion & End of Trade -
Long IqTradingView
Open position at $18.5
Stop loss at $17.5
Take profit at $20
Why this play?
As much as i would love to see a triple bottom for a long, I'm not sure we would get it. The china related stocks has been very beat up, especially IQ.
I have a seen a few of them reversal off already but iq hasn't really reacted much yet.
if we expect positive news on china trade deal, this would be a pretty good stock to go on long.
IQ- 4H chart about to make bullish moveOutlook:
- 4H chart holding off MA200 pretty well. Those who followed the IQ chart last week on Tradingview has made over 6% at the top of 23.12.
- 4H chart has been supported by MA200 for multiple days
Trade plan:
- Entry: at current level
- Stop Loss: tight SL below MA200
- Target: trendline resistance