The desire to exit today was strong with this one. 218.50 is both the 50% Fibonacci retracement as well as half the measured move for the Head & Shoulders pattern. So my 219 target seems like a good one. Stochastics are just at the 20% level so its not oversold quite yet.
But, price bounced off the 50 SMA today just after breaching it a little. We have a nice profit already if we got out near the 50 SMA, and there's only 2-3 weeks left on our option, so if we get a bounce tomorrow to go back up and test the bottom of the channel before continuing down, that might take several days which starts to become a Theta decay concern.
However, this pattern is so strong and the stochastics tell us we have some more room to the downside tomorrow, I fought the urge to lock in profits and decided to hold on for another leg down tomorrow and hit my original target.
No comments:
Post a Comment