SB Bullish, still on trackStill bullish SB as it appreciated over the past month. It really gained momentum has it had to break out from oversold conditions.
What happened over the course was the term structure (future spreads) are now in backwardation for the entire next year. This leaves me with remaining bullish as it foreshadows supply tightness coming out of Brazil.
Also the USDBRL has come off of its highs and could provide some further support for a rally
USDBRL
Long call trade: EWZ - Yacine Kanoun inspiredYacine Kanoun brought this stock to my attention.
I'm considering purchasing calls with a strike price of 40usd and an expiration date on March 6th.
The spread between USDBRL and EWZ is reaching similar percentages to what has show in the past, so I think that it's due for an adjustment, and thus agree with Yacine.
I also spotted a technical key level, which I want to see the stock avoid to retest during the next week, for a time at mode buy setup to confirm.
My own indicator displaying bands shows price reached an extreme low, and so does rgmov.
The retest of the supply area seen in the last high, but on lower volume is a bullish signal as well.
Remember to risk less than 5% on each trade, in this case, I'm considering a 1.5-3% risk.
Good luck!
