Strong up move end of June followed by consolidation manifested as a wedge (triangle). 7/13/17 price broke out, then retraced to test the top of the wedge. Then today 7/19/17 we had a gap open after a doji yesterday. I love a break out followed by a retest and confirmation. That's what we have here, so I want to trade it.
Got Sep 80 Calls for $3.20. You can see in the chart above the daily candle went up and came back down to just below the open. This doesn't bother me. In fact, I'm ok with completely closing the gap, and even all the way back to the top of the triangle. The message is the same. As long as price doesn't close below the bottom of the triangle, I'll hold. My risk is limited to the cost of the options.
No comments:
Post a Comment