ALK - If today is 3rd bearish engulfing, swing puts

22 באפר׳ 2020

The yellow rectangle shows two bearish engulfing candles. Today might be a third. If so, a trade below the candle's low is a trigger for puts. Also RSI is below 50 and stochastic is crossing below it. Downside targets are 23.30, 21, below 20

22 באפר׳ 2020

הערה

alternatively, This is also a great place to buy calls. You exit if stock trades below today's low.

23 באפר׳ 2020

הערה

You can buy 5/15, 30 strike calls (low volume on June) with a stop below 27.02. This is a short term trade.
Also set an alert due to yesterday's bearish engulfing candle - if stock trades at 27.01 or lower, buy puts.