Nov Spread Trade
I am currently consider playing this Nov spread
OS Bear Call
Sell Nov 55.00 call
$1.05
Buy Nov 60.00 call
$0.45
Net credit $0.60 -13.64%
Technicals: The month of May is the last time that we really witnessed any strength in this stock. Since then, prices have more or less consolidated into a sideways trend much like its industry. The stock trades in the basic/iron & steel industry which is trending sideways to down. Recently, the stock broke out of a long forming Top Triangle. This chart pattern is considered to be a bearish signal as it indicates a possible reversal of the current uptrend to a new downtrend. Currently, the MACD’s are providing a sell signal while the Stochastics are yielding a buy.
0 Comments:
Post a Comment
<< Home