XLB J-hook Frypan Bottom Update 1

XLB Daily

XLB 1 minute

On the daily you can see we had a nice pop right to the first target of 127.2% Fib extension. We're also well above the 8ema, which increases the probability for a pull back to the 8ema. So now I want to preserve some gains.

To tighten up my stop I went to the 1 minute chart. You can see we pulled back a little right at the 127.2% Fib extension. Coincidence? I don't know but see the dip that turned back up just above 53.10? I moved my stop to 53.10 thinking if we hit that then we're at risk of a more substantial pull back. I did that at 10:30am.

At 10:46 that stop was hit and the XLB Mar 51 Calls sold for 2.55. I had bought them 1.12 on 1/23/17. That's 128% Return on Investment in 3 days.Nice work if you can get it.

I'm holding onto the Mar 51/52 Call spreads because the 2nd target is the 161.8% Fib extension, and the spreads are a lower risk (because they cost less). If we close below the 8ema on the daily and the spreads have some value I'll sell them then. I have a standing limit order for those to sell at .90.