Interesting day. We gapped down at the open right at the bottom of the open gap 124.26 - 123.06. That was great, but we spent the day filling in the original gap, then also filled in the rest of the gap we formed at today's open. In so doing, we watched about $100 of value in our Put option dissipate.
Looking at it on the hourly chart above we see we formed a flag. I was very tempted to take the $150 profit that was left in the trade at the end of the day. But, even though we closed over the 8ema, we're still under the downward angled Trend Line, under the 200sma, 50sma, and 20sma. Since we filled the gaps and we're close to resistance, there's a good probability we'll resume the down trend tomorrow.
However, the past few Thursdays have had strong bullish moves. We could break out to the upside and just keep going. And the bottom of the channel could certainly provide support.
We could also bobble around between the 8ema, upward Trend Line, and the top of the gap providing support, and the downward Trend Line, 50sma, and 20sma overhead providing resistance, until we break out one way or the other.
It was a difficult choice, but we stayed in the position. We'll see what happens tomorrow.
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