I am not licensed or certified by any individual or institution to give financial advice. I am not a professional Stock trader.
Chevron (CVX) gapped down today, big time; but it couldn't break the 100 Day Exponential Moving Average (EMA). If you look back to October 27, 2017 (see the purple arrow I inserted on the lower left of the chart to mark the date) Chevron did the exact same thing. It proceeded to go back up. I think it will repeat itself in the coming days. It used the 100 Day to bounce and will go back up. I typed up the strategy I used for this play and you should be able to see it on the chart. The 200 Day EMA is sitting just above $118.40ish giving this play more than $4.00 of cushion. Additionally, next week is a short trading week in the United States due to markets being closed on Monday in observation of Memorial Day. That means this Stock has four days to not go down more than four dollars, and the Credit from opening the play is kept. Yes, you could tighten the spread; but having the 200 Day EMA adds a little protection, and I'm still learning how to do Spreads. :)
Chevron (CVX) gapped down today, big time; but it couldn't break the 100 Day Exponential Moving Average (EMA). If you look back to October 27, 2017 (see the purple arrow I inserted on the lower left of the chart to mark the date) Chevron did the exact same thing. It proceeded to go back up. I think it will repeat itself in the coming days. It used the 100 Day to bounce and will go back up. I typed up the strategy I used for this play and you should be able to see it on the chart. The 200 Day EMA is sitting just above $118.40ish giving this play more than $4.00 of cushion. Additionally, next week is a short trading week in the United States due to markets being closed on Monday in observation of Memorial Day. That means this Stock has four days to not go down more than four dollars, and the Credit from opening the play is kept. Yes, you could tighten the spread; but having the 200 Day EMA adds a little protection, and I'm still learning how to do Spreads. :)