Author: Rick Pendergraft, Trades Of The Day

It recently found support at its 50- day moving average and has been rallying since.

The shooting star candlestick from Wednesday and the stochastic indicators making a bearish crossover are two signs it’s likely trending lower over the next few weeks.

With short-term trend support and favorable stochastic readings, the target is easily within reach.

I look for the underlying security to make a similar move to what we saw from late October through early December when it returned over 15% during that stretch.

It’s my “Option Trade of the Day”.