ICEI trade ideas
ICE-Weekly neutral bias–The 268.89 peak area could cap near termICE@ 258.16, Weekly neutral bias – The 268.89 peak area could cap near term
ICE rallied off the 227.22 swing low (March 7, 2016 weekly low) to look to challenge the 266.74/268.89 topping zone (November 9, 2015 weekly high/February 8, 2016 all-time peak).
The area is near the 2.5-year rising wedge resistance (linking January 6, 2014/November 9, 2015 weekly highs). A clean upside break is needed to sustain the 7.5-year uptrend and target the 300 area.
Failure to decisively break above the 268.89 resistance would suggest near-term topping and signal further consolidation back to 238.10 (May 2, 2016 weekly low). Below lies the 227.22 significant support.
However, if the 220.28/227.22 medium-term support area (August 24, 2015/March 7, 2016 weekly lows) were broken, that would suggest further retreat towards the 202.24/200.00 support zone (January 26, 2015 weekly low/psychological number) which is also near the long-term rising trendline (from January 2009 higher low).
Outlook:
Intraday: bullish
Daily: bullish
Weekly: neutral
Monthly: neutral
ICE approaching multiple key hidden levelsAnalysis on chart, expect another touch of earnings levels before any sustainable upward action can ensue (current move off this level is corrective)
Good shorting opportunityICE - has been treading at the lower part of the downtrend channel since april, it started its explosive move Sept onwards. After making a high, it retreated and attempted a higher high. At closed yesterday, it ended with a Big DOJI which is skew lower than the mid point. With MACD and RSi giving signal (though not formed yet) bearish divergence and price are nearing the top of the channel, there is a good chance that ICE will join the next sell off.
With a price of 200000 in 1 lot size, the plunge can carry some weight to affect the major indices.
If the entire market trend is in bad shape, shorting will give higher chance of success if all price pattern, chart pattern and indicator give a bearish signal.
This is expensive stock. So i can only use a put options at strike price around 200 but waiting for price to get as close as 205-207 so that i can buy my put options cheaper.
P.S. The Sept high is around 205, it tested once but failed. I anticipate another test and thats when i launch my attack
Symmetrical Continuation Bearish Triangle It looks the price has broken downward out of a consolidation period, suggesting a continuation of the June downtrend. A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in volume as shown the blue arrow on the last volume column, confirming the pattern as a continuation of the prior downtrend
