In a six month trend channel, it just hit the lower rail and it also has the 50-day moving average as support.
It’s my “Option Trade of the Day”.
It has an interesting chart and is trading near a busy point that’s acting as resistance.
The stock just hit the lower rail of a trend channel and looks poised to make another move to the upside. Similar November and February lows had jumps in excess of 35%.
From the low in January and March the stock bounced $5. If it bounces $5 from last week’s low, it will reach max trade returns.
The stock looks poised for another leg higher and the stochastic indicators made a bullish crossover last night.
The last time we saw the indicators down near oversold territory and at the lower rail of the channel, the stock rallied 14% in just under a month.
It’s overbought based on the 10-day RSI and the daily stochastic indicators and they made a bearish crossover.
The stochastic indicators reached a similar level at they did in late January and they made a bullish crossover on Friday. The move from the end of January through late February saw the stock rally over 28%.
In a trend channel for the last five months, it just hit the lower rail and looks ready for its next leg higher.