I liked DVN because it is at the bottom of an Ascending Channel which is $12.50 high. Since I am at support, I have low risk on this trade. I will either get stopped out 3% below support OR, if the stock closes below the diagonal support line for two (2) consecutive days, I will get out.
This actually has two possibilities for profits. The first is a Pennant play, which means the stock will hit diagonal resistance and fall, at which point I may get out for a small profit.
Or second, and very exciting, is for the stock to break above diagonal resistance and head for the Channel Resistance which would capture $12-$15 in profits! At that point I may sell the stock and wait for the pullback, or sell an ITM Covered Call and buy it back once the stock retraces back to Channel Support. Here is the chart:
ZUMZ which I have been watching for awhile, has made another "bounce" today, so I got in again. This has a modest $4-$5 profit target at which time, I may consider selling a Covered Call. The only concern I had was that there is a "Bearish Divergence" with the MACD meaning those peaks are getting smaller, even though the stock is going up in price. It is just something to be aware of. Anyway, here is the chart:
JOYG is a stock that is very high on my radar. This is a GREAT stock fundamentally (8/2, 3.62, 4.0) and looks to be making a run at breaking TWO resistance lines, a horizontal and diagonal one. If it breaks those two on good volume, that would be an entry point. I would play this as a TREND trade, so I would play it through earnings if the signal occurs before that day, then maybe buy a couple of protective Puts just in case. Here is the chart:
The BIG ONE that got away...FRK:I swear to GOD I had this on my BUY list for this morning only to see that Vulcan Materials made an offer to buy them over the weekend. The cost to me...$19!!! Check this out!
ONE of these days I'll get this lucky (by the way, "luck is when preparation meets opportunity" - Seneca the Elder").Happy Trading!
No comments:
Post a Comment