Quick update on MSFT based on the 1-hour chart setup, with special attention to reversal zones.
📈 Technical Analysis (TA):
* MSFT is currently consolidating right within a key green reversal zone (around $393). This area indicates potential bullish exhaustion, signaling a possible reversal if price fails to break higher.
* Immediate support marked clearly by the red reversal zone around $380. This significant area indicates potential bullish opportunities if tested.
* A Change of Character (CHoCh) has been detected at both reversal zones, emphasizing their significance.
* Pay close attention to how price reacts at the current green reversal zone; a confirmed rejection here could initiate bearish momentum towards $380.
📊 GEX & Options Insights:
* Highest positive NET GEX and strongest CALL resistance are at $400—critical gamma resistance.
* Strong PUT support at $380, aligning closely with our red reversal zone—highly significant for downside defense.
* IV Rank is moderate at 25.1%, providing opportunities for both bullish and bearish spread strategies.
* Extremely low PUT ratio at 3.6%, indicating prevailing bullish sentiment; however, caution at reversal levels is advised.
💡 Trade Recommendations:
* Bearish Play: Consider puts if MSFT strongly rejects the current green reversal zone around $393, targeting the red reversal zone support at $380.
* Bullish Play: If MSFT clearly breaks above the green reversal zone (above $395), target the gamma level at $400. Tight stop-loss around $390.
* Neutral Approach: Iron Condors or credit spreads between the reversal zones ($380–$400) could benefit from current moderate volatility.
🛑 Risk Management: Given the significance of these reversal zones, carefully manage positions and respect stops.
Stay cautious and trade smart!
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
📈 Technical Analysis (TA):
* MSFT is currently consolidating right within a key green reversal zone (around $393). This area indicates potential bullish exhaustion, signaling a possible reversal if price fails to break higher.
* Immediate support marked clearly by the red reversal zone around $380. This significant area indicates potential bullish opportunities if tested.
* A Change of Character (CHoCh) has been detected at both reversal zones, emphasizing their significance.
* Pay close attention to how price reacts at the current green reversal zone; a confirmed rejection here could initiate bearish momentum towards $380.
📊 GEX & Options Insights:
* Highest positive NET GEX and strongest CALL resistance are at $400—critical gamma resistance.
* Strong PUT support at $380, aligning closely with our red reversal zone—highly significant for downside defense.
* IV Rank is moderate at 25.1%, providing opportunities for both bullish and bearish spread strategies.
* Extremely low PUT ratio at 3.6%, indicating prevailing bullish sentiment; however, caution at reversal levels is advised.
💡 Trade Recommendations:
* Bearish Play: Consider puts if MSFT strongly rejects the current green reversal zone around $393, targeting the red reversal zone support at $380.
* Bullish Play: If MSFT clearly breaks above the green reversal zone (above $395), target the gamma level at $400. Tight stop-loss around $390.
* Neutral Approach: Iron Condors or credit spreads between the reversal zones ($380–$400) could benefit from current moderate volatility.
🛑 Risk Management: Given the significance of these reversal zones, carefully manage positions and respect stops.
Stay cautious and trade smart!
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
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.
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.