Watch this resistance, and overbought weekly chart
I know I just posted a chart for calls (see link), but the move happened between yesterday and today and now I see a greater opportunity to the downside unless prices moves past 266-267 again.
The solid white line connects closing prices on a line chart, while the dotted line connects lows. Both lines are drawn from Dec. 2018 and early Jun. 2019. Stock went over the lines on earnings, consolidated and on this move higher it has hit resistance at the line.
Directional volume shows overbought on weekly, plus price is extended from 20sma (as is the case with many stocks). I suggest buying swing puts and trading based on 30min and daily chart. Or you will find nice day trades on 5-15 charts with a larger timeframe for context.
The solid white line connects closing prices on a line chart, while the dotted line connects lows. Both lines are drawn from Dec. 2018 and early Jun. 2019. Stock went over the lines on earnings, consolidated and on this move higher it has hit resistance at the line.
Directional volume shows overbought on weekly, plus price is extended from 20sma (as is the case with many stocks). I suggest buying swing puts and trading based on 30min and daily chart. Or you will find nice day trades on 5-15 charts with a larger timeframe for context.
Trade active
Yesterday's high was just below 268. When I wrote 266-267 in above comment, I should have suggested that as a first stop (or not at all) and then 268 as a final stop loss. While stock is over the resistance line on 30 min chart (from my earlier call post, the daily resistance line is stronger. Stock keeps failing at that line. Also look at the weekly chart and you will see last week was an inside bar candle and this week is also; though let's check it after Friday's close. There is a great trade setup here. For me the risk is low because I will exit if stock trades over 268, and price is around 266 right now. Suggested puts are 8/28 or 9/4 expiry with 260 strike, or 9/18 with 250 or 255 strike.
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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.