Actvision - Bullish on the minor/intermediate time frame
ATVI: Why I went Long on Calls
* Company has been beat up since a month ago after creating new ATH's at 81.xx
* Basis line on the BB has been breached; 50EMA has been breached; now is currently being supported by an ascending trend line that has propped the stock up on 3 separate weekly occasions (Dec, early April and late April)
* This ascending TL also shares confluence with the 200DMA - the most powerful support
* This is a reversal play and I only play these under extreme conditions in which the price is tapping outside of the lower daily Bollinger bands (7/30 and 8/3) and RSI is reaching below 30
* Price has been rounding out in the past week which was important for me before entering a position as I'd like to see the market's reaction to the conservative guidance issued by the company's most recent ER
With this said, I believe this is a great setup that offers all of the elements that I require before entering a position.
* The risk is defined - my setup is no longer valid if I receive a D2 close below the 200DMA which is roughly about 69.35
* This entry is after the fact of extreme conditions that I'd like to see before trading reversals
* Profit target is a relief back to the .618 fib level which is still below the 50EMA as I do not expect the stock to travel past that in the time frame I am seeking to close this trade out (3-6 weeks)
* I will exit 75% of my calls if momentum looks to be in my favor and price pierces the 50EMA but I will certainly lock in profits at the 74.xx level (.618 fib)
I opened 70C's for 10/21 on Friday, Aug 10, when the underlying share price was 70.72
* Company has been beat up since a month ago after creating new ATH's at 81.xx
* Basis line on the BB has been breached; 50EMA has been breached; now is currently being supported by an ascending trend line that has propped the stock up on 3 separate weekly occasions (Dec, early April and late April)
* This ascending TL also shares confluence with the 200DMA - the most powerful support
* This is a reversal play and I only play these under extreme conditions in which the price is tapping outside of the lower daily Bollinger bands (7/30 and 8/3) and RSI is reaching below 30
* Price has been rounding out in the past week which was important for me before entering a position as I'd like to see the market's reaction to the conservative guidance issued by the company's most recent ER
With this said, I believe this is a great setup that offers all of the elements that I require before entering a position.
* The risk is defined - my setup is no longer valid if I receive a D2 close below the 200DMA which is roughly about 69.35
* This entry is after the fact of extreme conditions that I'd like to see before trading reversals
* Profit target is a relief back to the .618 fib level which is still below the 50EMA as I do not expect the stock to travel past that in the time frame I am seeking to close this trade out (3-6 weeks)
* I will exit 75% of my calls if momentum looks to be in my favor and price pierces the 50EMA but I will certainly lock in profits at the 74.xx level (.618 fib)
I opened 70C's for 10/21 on Friday, Aug 10, when the underlying share price was 70.72
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.