BIIB made a strong vertical move from 6/19/17 to 6/22/17 then made close to a 50% retracement while not being able to close below the 8ema. Today, 7/5/17 it had a small gap up open after a doji. At 11:30am its looking strong and beginning to form a J-hook. Stochastics are not overbought yet. Volume is down and could be ready for a resurgence during an up leg. You can also see an inverted head and shoulders pattern with a low on 5/31/17. Plus price is above all my Moving Averages at the moment.
The thick white vertical line is a measured move equal to the previous up move from 6/19/17 to 6/22/17. The thin white horizontal line segment is the halfway point on the measured move. This is another potential target, and very close to the previous top on 6/23/17. This is the most conservative target.
The 127.2% Fibonacci extension is another good target at 293.26 on my chart.
If it continues up and moves as fast as the last leg, we only need a week or two to hit our target. So, to reduce cost, and increase Gamma, and mitigate the Theta time decay, I used a July 21 280/290 Vertical Call Spread. Got in at $2.75 using a limit order at the midpoint between the option spread bid and ask. This is a potential 1000:275 reward:risk, or about 3.5:1 which is good.
It will be important to close the day today above the open. If we close under the 8ema and continue down tomorrow, I should get right out and watch for a quick up move where I can get back in.
To see how my chart is set up, check out this posting:
http://jmstweets.blogspot.com/2015/04/my-standard-chart-indicators.html
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