Author: Rick Pendergraft, Trades Of The Day

Below a trend line since late February, there have been a series of lower highs over the last month and the stock just hit the trend line.

It’s overbought based on both the 10-day RSI and the stochastic indicators with the stochastics making a bearish crossover last night.

In a downwardly sloped trend channel over the last two months, it’s hitting the upper rail. The stochastic indicators reached overbought territory and made a bearish crossover on Friday, as well.

It’s my “Option Trade of the Day”.

The underlying security looks to be in a similar setup to late January when it nearly doubled in six weeks.