I know my husky is excited about CHEWY reporting earnings this week. With market profile supply around $80 I must be bearish . There is a lot of areas of supply above those levels. The trendline that began last year in March was finally broken in April this year with a close below the trend line . It rallied afterwards for a few days but all it was, a dead cat bounce, where hopium took over the buyers believing that it was the bottom and the new rally would begin. It continued dropping and it had no problem breaking the trendline once again but with more force to the downside that time. To not my surprise it rallied from an area of market profile demand where a continuation formation was seen kissing the 20MA giving us confluence and a stronger signal to go long, but that is all in the past and what we should focus is on the present and future. The previous trendline has turned into a polarity trendline where previous Support held but now Resistance stands. I am expecting price to hit its head there. I will see how price creeps up prior to earnings and when the time comes I will look to buy the $72 puts, I will do so when price hits $80.23 or if the momentum is to high I will go ahead and wait for it to hit its head on the $86 level of supply. I will not ignore the evidence of changing circumstances but as of now in those levels I am bearish . Not looking to go long anywhere until the $71.25 area. #TTP #TrusTheProcess
Trade closed: target reached