Good Morning
I appears as though all the shorts or the majority of them have cut in what can only be described as a good old fashioned short squeeze.
This has resulted in the weekly close chart making a 6.85 Fibo extension, something very rarely seen on weekly charts.
With it only being Tuesday there is every chance that the price could still rally some more to take out the last of the hardcore short sellers.
I was taught to never picks tops or bottoms but every once in a while one sees an opportunity too good to pass up and this is one of those times.
I would look to sell over $780.
I would preferably look at buying puts as a chart like this has no natural stop loss and thus could only lose my premium paid, even though vols should be through the roof.
The minimum downside target should be $570 and hence too good a trade to ignore!
Good Luck and Happy Turn Around Tuesday!
GC
I appears as though all the shorts or the majority of them have cut in what can only be described as a good old fashioned short squeeze.
This has resulted in the weekly close chart making a 6.85 Fibo extension, something very rarely seen on weekly charts.
With it only being Tuesday there is every chance that the price could still rally some more to take out the last of the hardcore short sellers.
I was taught to never picks tops or bottoms but every once in a while one sees an opportunity too good to pass up and this is one of those times.
I would look to sell over $780.
I would preferably look at buying puts as a chart like this has no natural stop loss and thus could only lose my premium paid, even though vols should be through the roof.
The minimum downside target should be $570 and hence too good a trade to ignore!
Good Luck and Happy Turn Around Tuesday!
GC