1BK trade ideas
My BK play Good afternoon, I sold to open 2 bear call spreads. BK 04/23 47.5/48 Bear Call. Since I shorted call spreads I received the income right away (cash inflow). This strategy protects me against theta decay and IV drop. I only get back the full collateral if the price on April 23rd is less than or equal to $47.5.
BANK OF NEW YORK MELLON CORP Analysis DailyHello traders, BANK OF NEW YORK MELLON CORP is a bearish fake dynamic with a large volume of purchases issued and a trace made of sellers. In TIMEFRAME M1 we see the title which makes a hammer bear candle with a high volume of sales at the end of the session. It is heading towards the VWAP strong potential breakout the price to go to the next high before closing the bearish breakout gap (See TIMEFRAME H4). And if the buyers are still in the process, go to the next high that we find in Daily.
Please LIKE & FOLLOW, thank you!
$BK daily #chart possible bullish #breakout$BK stock price has been trading for almost 2 years inside a descending parallel channel
After good earnings report in OCT'19 stock has risen fast and notice the accumulation bars on the volume chart
MACD and RSI in expansion mode
In order to participate look out for a breakout AND CLOSE above the descending line
Measured targets are:
T1 - lower edge of the mirroring channel around 62.33
T2 - higher edge of the mirroring channel around 70.58
Good luck,
TA
Buy! Overreaction due to Q2 earnings down correction.Fundamental:
Analysts reached a consensus estimate for Bank of New York Mellon's second-quarter earnings of 91 cents a share, according to FactSet. "Bank of New York Mellon Beats 2Q Profit Expectations," published at 6:51 a.m. ET, incorrectly said that the FactSet consensus estimate was 95 cents a share.
The Shares plunged about 8%. Definitly Overreaction.
General Bullish sentiment across several markets.
Technical:
RSI: 38,40;
Trendline(Flag Pattern);
U turn up on BK trading details......!!!By looking at the chart, it looks more similar a upside down mountain sloppy hill.
Recognizing this kind of a change can allow traders to take profits and protect themselves from buying into an unfavorable market, or strategics to make money from falling prices by short-selling.
The big question is that what will be the next move?
So basically it has many answers:
1st it can break the support line with heavy volume and move towards down direction.
2nd it can take the support and move towards up-direction not braking the support line.
3rd by moving slowly zig-zag not breaking the line and creating a value area.
Let's short a bank [BK, Bank of New York Mellon Corp]This idea is probably premature, and based on my fundamental bias that the market in general, and banks in particular, are based on fake money and debt and will roll over soon.
As a reason against this thesis, the fundamental news for this particular bank seems to be good, with hedge funds reported to be bullish on it.
So I will trade this, but with a very small exposure in case the market continues to be irrational.
Let's see what technical reasons there might be to be short.
This chart caught my eye because out of the banks on my watchlist, it has the most pronounced red trend on the 4H chart. So, strike one.
On the daily chart, you can see that the 21D EMA is starting to roll over, and unless it bounces hard right here, it will have a bearish 8/21 EMA cross confirmed by the end of today. Strike two.
On both the daily and 4H charts, price is now underneath all EMAs and all EMAs are downsloping. Very bearish. Strike 3.
Additionally, I've drawn some trend lines on, and you can see it's broken them all downwards one after another. This isn't an exact science, just a crude way to illustrate how the trend is curving downwards. Most assets are doing some version of this, usually breaking triangles down, but on this chart it's a bit clearer.
Of course, horizontals > diagonals. Here we can see that it's resting on what looks like a 4H support zone (in green).
So rather than shorting support, a prudent trade plan might be to wait for this to break and then short a retest, with a tight stop above the support zone or a safer stop above the bunch of 4H EMAs, coinciding with the last diagonal trend line.
Trade safe everyone!
++++++++++
Disclaimer: I know nothing and it's not my fault.
Indicators used: standard Moving Average 200; Moving Average Exponential 200, 21, 8; Price Action Trend Overlay | Simple
2nd Attempt on $BK Long Setup:: It was a failed setup from 2 days okay; I kept $BK on my watchlist and see a possible good setup
+ NR7 with lowest vol. over the past 30 sessions
+ Inside bar + NR7
+ Hammer
+/- Weak support from .38 Fib
- Yesterday's bar had long upper shadow
- Appears to be moving side way around the 0.5 Fib.
Setup:
Long above yesterday's high
Stop set conservatively at last week's low
Target at .62 Fib
Swing Trade Setup - $BR$BK - long
What I saw:
+ Sideway move within channel in the past 10 days
+ Breakout signals fired in high vol.
+ MACD turning positive
+ Weekly chart painted a NR3 & NR7 combo with higher vol.
- Upper shadows scattered whenever price reached resistance
- Next Fib resistance is at $39.5
- Overall price has been in downward trend
My entry plan:
Long above $38; Stop at low-$35; Swing trade with a target of $42.88
