ARM Explodes Higher! Is There More Upside Ahead? Jan. 23Technical Analysis (TA) for Trading:
1. Trend Analysis:
* ARM has recently broken out of a consolidation phase and is in a strong uptrend on the hourly chart.
* The price surged past resistance at $150 and is currently testing the $180 level.
* A rising wedge pattern suggests possible consolidation or a pullback.
2. Key Levels:
* Resistance: $182.88 (recent high), $185 (psychological resistance).
* Support: $175 (key intraday support), $160 (previous breakout level).
3. Indicators:
* MACD: Bullish momentum but showing signs of weakening. Watch for a potential crossover for reversal signals.
* Stochastic RSI: Overbought, signaling potential short-term profit-taking or consolidation.
4. Volume:
* Strong breakout volume indicates bullish interest, but declining volume near $180 suggests weakening momentum.
5. Outlook:
* Bullish above $175 with potential retests of $185 or higher.
* Bearish if $175 breaks; watch for a pullback toward $160.
GEX Analysis for Options Trading:
1. Gamma Exposure (GEX):
* Highest Positive NETGEX: $160, acting as strong support.
* CALL Walls: $175 (68.93% GEX7) and $180 (78.79% GEX8), significant resistance zones.
2. Options Flow:
* IVR: 24.8, indicating low implied volatility relative to the past year.
* IVx Avg: 81, slightly elevated, suggesting a moderately bullish sentiment.
* CALL Activity: 73.2%, heavily skewed toward bullish positioning.
3. Trading Strategy:
* Bullish Setup:
* Buy Calls: $180 Strike (expiring 1-2 weeks).
* Entry: Near $175 support.
* Target: $185-$190.
* Stop-Loss: Below $170.
* Bearish Setup:
* Buy Puts: $170 Strike (expiring 1-2 weeks).
* Entry: Near $182 resistance.
* Target: $160.
* Stop-Loss: Above $185.
Actionable Suggestions:
* Monitor $175 for bullish continuation or breakdown signals.
* If momentum weakens, consider short-term profit-taking or protective puts.
* Options traders should focus on strikes aligned with GEX levels ($175 CALLs or $170 PUTs).
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk effectively.
