$CHWY Structure is your Friend
מעודכן
Just "KISS"ing.
Keeping it simple stu***
At times its better to keep your chart clean and simple.
It allows you to eliminate the noise & identify the structure that has developed.
At the moment we are at the top of the structure aka resistance.
Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.
Some possible plays below:
a) conservative play: take profits (if you're already in) and buy the dip at $46 (with a target at top of structure at $52)
b) medium risk: short this $52 level and cover at $46 (structure support)
c) High risk/high reward: Long $46 strike puts (ill leave expiry dates up to you)
Everyone has their own risk appetite, play what makes sense to you, cheers!
Keeping it simple stu***
At times its better to keep your chart clean and simple.
It allows you to eliminate the noise & identify the structure that has developed.
At the moment we are at the top of the structure aka resistance.
Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.
Some possible plays below:
a) conservative play: take profits (if you're already in) and buy the dip at $46 (with a target at top of structure at $52)
b) medium risk: short this $52 level and cover at $46 (structure support)
c) High risk/high reward: Long $46 strike puts (ill leave expiry dates up to you)
Everyone has their own risk appetite, play what makes sense to you, cheers!
הערה
Buyers fully in control breaking out price above previous $52 resistance.Note how out mentioned, since overall structure is upward, i choose not to short or buy puts. This is a prime example for the rule, "never trade against trend."
Congrats, to those who held through this resistance as well as breakout buyers.
Those looking for (re)entry: use the structure for long opportunities, in this case would be a retest of the $52 breakout. Set alerts for $52 and seek lower timeframe bullish patterns at $52 support.
I will now consider this "short analysis" invalidated.
For those following, i will continue to update and will provide an alert if I see bullish buying once we retest $52.
הפקודה בוטלה
"Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.""Buyers fully in control breaking out price above previous $52 resistance.
Note how out mentioned, since overall structure is upward, i choose not to short or buy puts. This is a prime example for the rule, "never trade against trend."
כתב ויתור
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