BABA - Short-term Bearish Entry Before Bullish Continuation
I AM NOT ENTERED IN THIS TRADE
Waiting on Weekly view Sell Signal – which will trigger with price below $210.73
Chart Details
Sell Signal on Daily View on 12/30.
Overall chart pattern is bullish breakout of wedge. The next bearish trend will be short-lived.
Trend Dots show next Weekly trend is Bearish.
Exits- Since BABA is overall bullish, I would exit at EMA’s around $190-$200.
$190 would also be good long entry (I will examine further/post if this occurs).
Entry Options
Looking at 1/10 Expiry. Call Credit Spread. 215/220 strikes. Market closed risk/reward looks weird to me. $130 Reward for $380 Risk. POP is 72.5.
Maybe because of high probability of profit the risk is higher as profit is more guaranteed? Not sure. But I prefer 1:1 or better risk:reward.
Must exit before expiry. Hold maybe a week. Exit at 50% profit, gap fills, or your risk tolerance.
About Me
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
I am transitioning to my new website www.moneypatterns.com and will be updating my username here. Same guy - new name. :)
Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards.
Disclosure - I am long BTCUSD, GBTC. Short term GDX Bullish, SMH Bearish, SPXS Bullish
Waiting on Weekly view Sell Signal – which will trigger with price below $210.73
Chart Details
Sell Signal on Daily View on 12/30.
Overall chart pattern is bullish breakout of wedge. The next bearish trend will be short-lived.
Trend Dots show next Weekly trend is Bearish.
Exits- Since BABA is overall bullish, I would exit at EMA’s around $190-$200.
$190 would also be good long entry (I will examine further/post if this occurs).
Entry Options
Looking at 1/10 Expiry. Call Credit Spread. 215/220 strikes. Market closed risk/reward looks weird to me. $130 Reward for $380 Risk. POP is 72.5.
Maybe because of high probability of profit the risk is higher as profit is more guaranteed? Not sure. But I prefer 1:1 or better risk:reward.
Must exit before expiry. Hold maybe a week. Exit at 50% profit, gap fills, or your risk tolerance.
About Me
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
I am transitioning to my new website www.moneypatterns.com and will be updating my username here. Same guy - new name. :)
Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards.
Disclosure - I am long BTCUSD, GBTC. Short term GDX Bullish, SMH Bearish, SPXS Bullish