My target is 112.12 as this was the resistance in the previous bounce and is also a Fibonacci confluence zone. If the stock breaks this level, I expect it to go back to 115 area.
Friday, January 22, 2010
Long SPY Calls
As I mentioned in my last post, SPY was reaching resistance and it confirmed that resistance level by falling 4 points to the support level I had mentioned - see chart below. I now see a good bounce off the orange support level and I have gone long few SPY calls.
My target is 112.12 as this was the resistance in the previous bounce and is also a Fibonacci confluence zone. If the stock breaks this level, I expect it to go back to 115 area.
My target is 112.12 as this was the resistance in the previous bounce and is also a Fibonacci confluence zone. If the stock breaks this level, I expect it to go back to 115 area.
2 comments:
got stopped out for a small loss as the price traced back to 111. turns out the 8 period SMA (which the price hit at right around 111.60, the same level from which SPY bounced upwards yesterday) proved to be a fairly strong resistance, one which I missed.
However, we are still holding the orange support and I still believe that we will hold this support. If it is broken, my next support level is at 106.4.
guess I was wrong about holding the support. Good thing I made no trades on it.
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