DCA Play $SOXL | Good R:R
here are my key observations based 4-hour chart on 
SOXL
Price is in a tight consolidation. must break $28.54 with an abs close to see upside potential.
If rejected, a revisit of $26.35 or lower could happen.
However, this sets us up for a great averaging play
$26.35 is a strong support, meaning price may bounce before reaching $25.57, a logical place to accumulate.
SL @ $23.77 (or close =< .79) a break below 23.80 will mean further downside. (best to confirm with close)
T1 @ $30.00 first aligns with 50% Fib. standard reversal area.
T2 @ $32.70 to gap fill if momentum is persists
Why this works:
no need to predict the exact bottom, nature of cost avg'ing
earlier rebound to $25.57 allows you to maintain exposure
scaling out at $30 and $32.70 locks in profits while allowing more upside
Good risk-reward ratio (~1:2.5 or better)
Risks to consider:
breaks <$23.79, will go lower (possibly retesting $22-$21 range)
If volume remains weak, recovery to $30 may take longer than expected
semiconductors remain somewhat bearish, meaningSOXL could lag even if it stabilizes a bit
Watch for volume confirmation on the bounce
Play for T2: In the event that price reclaims $28.54 quickly, consider adding to the position for momentum play to $30.00
Other supporting indicators:
a descending wedge has formed, this occurs after a downtrend where price is making lower highs and lower lows, but the slope of the downward move is narrowing; a bullish signal because it shows sellers losing strength, and a breakout to the upside is likely.
Last Vol was at 43.88M, lots of involvement
Implied Volatility was at 91.45%
β 4.32 : market expects large swings
Put to Call ratio (0.67) indicate to me that there are more calls than puts out, a bullish sentiment for those who aren't familiar with options.
SOXL Price is in a tight consolidation. must break $28.54 with an abs close to see upside potential.
If rejected, a revisit of $26.35 or lower could happen.
However, this sets us up for a great averaging play
$26.35 is a strong support, meaning price may bounce before reaching $25.57, a logical place to accumulate.
SL @ $23.77 (or close =< .79) a break below 23.80 will mean further downside. (best to confirm with close)
T1 @ $30.00 first aligns with 50% Fib. standard reversal area.
T2 @ $32.70 to gap fill if momentum is persists
Why this works:
no need to predict the exact bottom, nature of cost avg'ing
earlier rebound to $25.57 allows you to maintain exposure
scaling out at $30 and $32.70 locks in profits while allowing more upside
Good risk-reward ratio (~1:2.5 or better)
Risks to consider:
breaks <$23.79, will go lower (possibly retesting $22-$21 range)
If volume remains weak, recovery to $30 may take longer than expected
semiconductors remain somewhat bearish, meaning
SOXL could lag even if it stabilizes a bitWatch for volume confirmation on the bounce
Play for T2: In the event that price reclaims $28.54 quickly, consider adding to the position for momentum play to $30.00
Other supporting indicators:
a descending wedge has formed, this occurs after a downtrend where price is making lower highs and lower lows, but the slope of the downward move is narrowing; a bullish signal because it shows sellers losing strength, and a breakout to the upside is likely.
Last Vol was at 43.88M, lots of involvement
Implied Volatility was at 91.45%
β 4.32 : market expects large swings
Put to Call ratio (0.67) indicate to me that there are more calls than puts out, a bullish sentiment for those who aren't familiar with options.
עסקה פעילה
TARGET 1 REACHED
T2 still active.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.