Swing Calls, 2nd attempt - Daily stochastic will rise
This chart follows my earlier post.
First time calls did not work as price went lower. However this time 30min candle clearly broke over downtrend line and price is pulling back as I write this. Orange line connects closing prices.
I am allowing time for the calls to work because price may drop back below line. I will exit these calls if stock falls below 99.50, 99.00. There is room for BABA to go lower on daily chart and that could happen before a true rise. Given the daily chart context, with stochastic %D below 10 and RSI holding 40 (bull support) thus far I see reason to buy calls and wait. Normally I would look for more downside entries as long as %D is below 20, but with the %K bull alert (from island reversal, 16Mar) and daily 20sma sloping up, I like the reward to risk of buying early.
I bought 20May 125 calls. This was the option that saw unusally high volume recently.
FYI - even if this trade does not work, I will be watching this stock because China is providing stimulus that should boost this stock in the 2H2022 (2nd half of year).
First time calls did not work as price went lower. However this time 30min candle clearly broke over downtrend line and price is pulling back as I write this. Orange line connects closing prices.
I am allowing time for the calls to work because price may drop back below line. I will exit these calls if stock falls below 99.50, 99.00. There is room for BABA to go lower on daily chart and that could happen before a true rise. Given the daily chart context, with stochastic %D below 10 and RSI holding 40 (bull support) thus far I see reason to buy calls and wait. Normally I would look for more downside entries as long as %D is below 20, but with the %K bull alert (from island reversal, 16Mar) and daily 20sma sloping up, I like the reward to risk of buying early.
I bought 20May 125 calls. This was the option that saw unusally high volume recently.
FYI - even if this trade does not work, I will be watching this stock because China is providing stimulus that should boost this stock in the 2H2022 (2nd half of year).
Note
Such bad price movement today. Sold the calls for 18cent loss (per contract) because price could not start moving.
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