185 trade ideas
Alcoa completed important pullbackThis is a classic example of a horizontal resistance that becomes a support after a breakout. Alcoa successfully completed a pullback tot the former resistance which has become a significant support now.
In addition we can draw a upward trendline (support) under two bottoms. This upward trendline can act as support(stoploss) for the uptrend (long positions).
Current RSI level is historically high so we might see a cool-off period after which Alcoa will probably continue its uptrend.
Alcoa AA: Profitable correction?Recent breakout of cup formation with retesting breakout line. Could still short term go back to up channel line but longer term think likely will up wave to about 70 which would be .62 correction
If you like fundamentals see: seekingalpha.com
Interesting to me is the 2 negative reversals in the RSI (dashed black lines) both of which led to a negative trend change. The first was aborted by a bullish divergence. Currently have a potential bearish divergence.
TRADE IDEA: AA MAY 5TH 28/32/32/36 IRON FLYAA (implied volatility rank 73/implied volatility 48) announces earnings on Monday after market close, so look to put on a play before the end of the session to take advantage of the post-announcement volatility crush.
Metrics:
Max Profit: $210/contract
Max Loss/Buying Power Effect: $190/contract
Break Evens: 29.90/34.10
Theta: 4.96
Delta: 3.51
Notes: This is a preliminary setup that may require some tweaking once NY opens. As with all short straddles/iron flies, I would look to manage this at 25% max profit.
Currently, the setup is bid 1.75/mid 2.10/ask 2.45, which is not exactly "tight." Personally, I will look for a fill at or slightly above the mid price. The fly's an 8-wide, so I would have to get 1/4th the width of the wings out of it to make it worthwhile anyhow (i.e., >2.00).
Resistance becomes Support (Weekly Chart)You do not need to draw many lines this here. Key points here
1. Resistance becomes Support
2. Breakout of the resistance line at 40.00 (Round number)
3. Pullback and a bull hammer candle
In today idea I do not want to write a complete book about this chart, because the chart speaks for itself. But there are a point here:
The PE Ratio is: 49.37 looks high for you? This is relative for some investors. There is no absolute truth about the PE Ratio or else no one would buy this action because the PE is High.
Material for learning:
www.investopedia.com
stockcharts.com
www.onlinetradingconcepts.com
www.rediff.com
www.investopedia.com
Opinions are for educational purposes. I am not licensed to provide investment advice
