BioTech Reversale Buy-In: 30% Return?
Trading
SPSIBI
or a similar index is a nice way to use volatile markets to grow an account. An even better way to do it is to trade
LABU
which is a 3X leveraged version of the index (this increases the risk a lot and has decay involved. Meaning it is a short-term hold).
I see a bullish divergence on the bottom indicating a potential reversal...BUT I also see a hidden bearish divergence in the red which would indicate a continued negative trend.
This is what we need to look for:
1. If the price action follows my arrows, we want the new low to be a higher low. This would mean that we have a strong chance of breaking out of that hidden bearish divergence.
2. We need the price to break new highs along with the RSI level (i.e. We need the bearish divergence to be proven false.)
I see this as a risky play that could result in heavy returns. I would not hold on much past the 5800 level on a trade like this (unless you are long-term dollar cost averaging.)
SPSIBI
or a similar index is a nice way to use volatile markets to grow an account. An even better way to do it is to trade
LABU
which is a 3X leveraged version of the index (this increases the risk a lot and has decay involved. Meaning it is a short-term hold). I see a bullish divergence on the bottom indicating a potential reversal...BUT I also see a hidden bearish divergence in the red which would indicate a continued negative trend.
This is what we need to look for:
1. If the price action follows my arrows, we want the new low to be a higher low. This would mean that we have a strong chance of breaking out of that hidden bearish divergence.
2. We need the price to break new highs along with the RSI level (i.e. We need the bearish divergence to be proven false.)
I see this as a risky play that could result in heavy returns. I would not hold on much past the 5800 level on a trade like this (unless you are long-term dollar cost averaging.)
