Thursday, April 22, 2021

CRWD Bullish Daily Chart




Found this on Tradingview.com stock screener (>500k volume/day, >$20/share, Sorted by ATR).

Here are the Bullish indications I see:

  • Double Bottom off 61.8% Fibonacci retracement
  • Trendline Breakout
  • 50sma Breakout and Retest
  • Close above all Moving Averages
  • Bullish Harami Candlestick pattern
  • Gap up
  • Scoop pattern
So, I got a Crowdstrike May 220/230 Call Spread for $4.39. Of course, this is $10 wide spread, so the potential profit is $10 - 4.39 = $5.61 * 100 shares = $561. This is better than a 1:1 Risk:Reward.

Soon as the order was filled I entered a Limit Sell order for $9.95. No reason to wait. I always enter my Take Profit order and Stop orders immediately. Why not? Sometimes I don't enter a Stop order when I have a fixed maximum possible loss when using options.

My price target based on this very Bullish setup is to reach at least the 27.2% Fibonacci extension at 287.32 and potentially the 61.8% extension at 333.31. Even the lower target is well above the 230 top of the Call spread. I expect there to some trade management going forward to take advantage of a strong upward move, but anything can happen, so let's ease into it and see if the potential converts to paper gains.

No comments:

Post a Comment