Google-->> continued Bullish Momentum?!?!
GOOG
Analysis is based on simplified Smart Money Trading Concepts.
Even though this analysis is on the Daily Time Frame, the market structure is actually based on the Weekly Time Frame. The "Strong" low of $136.85 is considered the trade idea invalidation point. Any break and close on the weekly or daily timeframes below $136.85 would invalidate this trade idea. That means I would exit any long positions for a loss. While this is a late post, with price above the 50% of the discount zone. There is still some opportunity for options trades that make sense. However, it is not likely not for anyone trading CFD's or the underlying stock to profit as well in regards to Reward to Risk ratios unless you are trading in a lower time frame and have a tighter Stop Loss. That being said, you risk being stopped out unless your Stop Loss is at or below $136.85. Therefore making your Reward to Risk ratio less than ideal.
If you are interested in a free course on how I analyze the markets, let me know in the comments.
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Premium - Discount Zones Explained:
In Bullish market structure/bias ---> Buy below the 50% of a fibo retracement
**Ideally between 62% to 89%**
In Bearish market structure/bias--> Sell above the 50% of a fibo retracement
**Ideally between 62% to 89%**
***Please note: the fibo retracement would be flipped in bearish market structure and the 62%-89% zones would be in the upper 50% of the fibo retracement***
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Reward to Risk ratios could vary between 3:1 up to greater than 5:1 depending on the instrument you are trading and the level that you enter in at. The trade setups are fairly short term hold due to the current bullish momentum and current price being above the 50% retracement in the trading range. ~1.5 to 2 month hold time
If you are trading stock CFDs :
4 positions between the 62% pullback($143.82) and the 89% pullback($138.87) would be ideal.
Exits:
1st = $155.20
2nd = $160.15
3rd = $166.58
4th = $173.55
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If you are trading stock options:
NO less than a 1 to 2 month expiration!
Suggestion:
March 22nd Expiration - Buy CALLS between $155-$160
ideally 3 positions
If you need an options calculator, I suggest using: https://www.optionsprofitcalculator.com/calculator/short-put.html
Exits:
(STRIKE price)
1st = $166.58
2nd =$173.55
**Split your positions between the 2 suggested exits**
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If you are interested in a free course on how I analyze the markets, let me know in the comments.
THERE IS NO CHARGE FOR AWESOMENESS!