Weekly:
Cup&Handle formation
Basically price is consolidating and I am expecting price to move.It may move sharply up or down. I am expecting this due to the BB Bands width getting narrower and narrower.
Given that the moving averages are supporting price expecting price to move upward. Further last Weekly bar was a bullish engulfing pattern signaling strength.
Daily:
Break of the Upper Bollinger band confirming momentum to the upside.
Positive Divergence on the MACD to the upside
Symbol: S
Trade: Long Calls
Strike: $7.00
Expiration: 05/17/19
Cost: $.30
Contracts: 4x
Total cost = $120.00
Cup&Handle formation
Basically price is consolidating and I am expecting price to move.It may move sharply up or down. I am expecting this due to the BB Bands width getting narrower and narrower.
Given that the moving averages are supporting price expecting price to move upward. Further last Weekly bar was a bullish engulfing pattern signaling strength.
Daily:
Break of the Upper Bollinger band confirming momentum to the upside.
Positive Divergence on the MACD to the upside
Symbol: S
Trade: Long Calls
Strike: $7.00
Expiration: 05/17/19
Cost: $.30
Contracts: 4x
Total cost = $120.00
Сделка активна:
Still holding onto the calls which are currently priced at $.40
Сделка активна:
Will be looking to exit this trade. Limited risk given the cost of the option was only $.30 per contract will be looking to recover half and move on to the next setup. One of the many that will not work and its only part of the process. What I did realize was that potential squeeze setup on the W time-frame made enter the trade setup prematurely on the Daily chart. So that is a lesson learned but will be keeping this on the radar.