Today was a difficult decision whether to hold the position or exit. We didn't follow through to the upside. In fact, we had a little gap down, then continued down, and formed a Bearish Harami candlestick pattern. We closed under the 8ema, and Stochastics are not yet oversold. Also, yesterday we didn't close over the 8ema, so we're into this trade decidedly early. All this is Bearish and a good basis to exit the position, which is now underwater by about $240.
But, on the other hand, Monday's are a bit squirrely and deceptive, as far as price action. We may be just doing a retracement after a big move on Friday and have a "turnaround Tuesday" tomorrow. Also in favor of holding is last Friday's bounce off the AB/CD completion at the 61.8% Fibonacci retracement of XA. And we found support on the 50sma.
Since we have a fixed risk, thanks to using options, I decided to give this trade a chance to recover tomorrow, and held the full position. If things look bearish tomorrow as well, we probably need to close this trade.
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